Polychain is giving up on lucrative crypto arbitrage. Now, it is preparing to trade $6 million worth of ROOK tokens on Uniswap. After successful lobbying by activist investors for the altcoin, a potentially very lucrative trading opportunity has emerged for token holders.
ROOK move from Polychain!
What will you do with millions of dollars worth of ROOK tokens that are destined to become worthless in two months? If you are Polychain Capital, you have two options. The first is to put them on the open market. The second is to distribute the altcoin token through the smartest arbitrage trade. This has the potential to save you millions of dollars more. According to the analysis on on-chain data, Polychain is preparing to give up the gamble, which could pay out $8.7 million in an ideal scenario by liquidating its $6 million position through decentralized finance (DeFi) exchanges.
The crypto hedge fund moved 100,000 ROOK tokens to a new wallet on Wednesday. Thus, it raised the possibility that the long-unused management token would soon be cashed out. Meanwhile, ROOK recently waived its management rights. Instead, it became a kind of redemption coupon for holders to claim their share of the ROOK project treasury. Hours ago, he approved the sale of these tokens on Uniswap.
On-chain moves are revolutionizing the computation that drives one of the wildest arbitrage games in today’s decentralized financial markets. Speculative investors are snatching million-dollar chairs with intrinsically worthless meme tokens. In such an environment, another group of actors is methodically draining some of ROOK’s treasury with redemption tokens that will turn into goose eggs on July 12. Some of these activist investors hoped that Polychain would forget to use their tokens. He also expected other holders to leave more cakes to claim. “I hate to see this,” one observer said after Polychain came out of hibernation this week.
Polychain invests in this altcoin project
As you follow on Kriptokoin.com, Polychain deposited a “seven-figure sum” in KeeperDAO in the summer of 2020. As a result, ROOK took his bag. The altcoin has since changed its name and product. He also gave up running the DAO. As such, activist investors who successfully lobbied have spawned the project. Meanwhile, the token has gained over 350% since the end of March.
ROOK is currently trading at $59. At that price, it’s worth about $5.9 million worth of Polychain’s current treasury. On Thursday, Polychain prepared to sell rather than monetize. In doing so, one of the oldest and richest crypto hedge funds,
Polychain apparently sneered at a somewhat risky arbitrage trade that could pay out millions of dollars more. It gave up the opportunity to use ROOK tokens through the “rage quit” smart contract, which could fetch up to $8.7 million. Because these ROOK tokens entitle you to a guaranteed slice of ROOK’s treasury. Also, there is a possibility that other ROOK holders will get even more returns if they forget to do the same. It is possible for Polychain to sell their ROOKs on the open market for more. However, the token must continue to rise to $87. And only two months left to get there.
Extremely profitable investment strategy!
Until mid-July, ROOK holders have the right to exchange legacy management tokens with a smart contract that issues an equivalent number of pROOK tokens and 40.76 USD coins (USDC) per ROOK. After the deadline, the smart contract will split the unclaimed USDC proportionally among all pROOK holders.
Speculators put a 50% premium on ROOK’s price. He probably hopes that many holders will forget to use their tokens for some reason. According to expert estimates, if redemptions stop today, each pROOK would be worth approximately $94.32. Considering that these holders collected the token at $40.76, this means a huge profit.
However, Polychain is the fourth largest holder of ROOK tokens. His whale-sized bag will punch a big hole in pROOK’s rise. That would almost halve his current projected payout. Still, $47.14 in extra cash on top of $40.76 will push ROOK’s redemption value well above the current market rate.
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