BitMEX’s former CEO Arthur Hayes dumped 1.59 mln of $PENDLE tokens for $5.62 mln at an average price of $3.52 per token. The selling took place in two days and there was surprise in the crypto community, following the sale. The price of Pendle rose by a staggering 24% to $4.33 within hours of the sale. This price increase now pegs the tokens Hayes sold at around $6.91 million, so he may have lost out on an additional $1.29 million in selling.
Even as Hayes liquidated, Pendle’s value bounced back and the subsequent rally that ensued left many commentators largely caught off guard. Hayes’ sell off was also sizable, constituting a considerable stake in the market, yet the outcome demonstrated the uncertainty associated with fluctuations in cryptocurrencies. Any traders who chose to remain long on their Pendle tokens may have noted a rather healthy bounce back in their investments.
Transactions of a large number of tokens, particularly by influential individuals such as Arthur Hayes, causes the value of digital assets to fluctuate in the short term. In this case, the initial expectation would have been a drop in the price of Pendle after selling it. However the market surprised everyone and went up, which caused the downtrend to reverse and increase the price.
This goes to show that the volatility that characterizes the crypto market is rooted in arbitrary price fluctuations that stem from market sentiment, traders’ actions, or large ticket transactions.Hayes’ latest dumping of this coin shows investors that timing is crucial in the trade of these digital assets. The switching of price can be so shocking that even the most experienced market player will lose out on prospective profits.
Read CRYPTONEWSLAND onFrom an investment perspective, it also allows users to track market tendencies to better observe actions of key influential stakeholders in the context of a given token to potentially predict subsequent trends in token price.Thus, although Hayes’ sale led to a temporary drop in the price of the asset, Pendle’s subsequent increase indicates that there is ongoing demand and high activity surrounding the token.
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