On-chain Activity: One address transfers a large amount of LDO to Binance, facing a potential loss of $1.2 million if sold

The Twitter account Lookonchain observed the activity of an address transferring a large amount of LDO tokens from Lido Finance to the exchange Binance at a loss price, potentially resulting in a $1.2 million loss if sold at the current price.

It is important to note that transferring to an exchange does not necessarily mean selling the tokens, it is just one of the possibilities.

A Loss-Making Transfer of LDO from One Address

The Twitter account Lookonchain reported that an address starting with 0x1abd purchased a total of 681,685 LDO tokens between September 2021 and May 2022, worth approximately $2.2 million, with an average price of $3.23.

Today, the address transferred 200,500 LDO tokens to Binance at an average price of about 1.36. If the address chooses to sell all tokens, it will incur a loss of $1.2 million.

An address that had been buying $LDO before is currently selling $LDO at a loss.

Address “0x1abd” bought 681,685 $LDO with 753 $ETH ($2.2M) in September and October 2021 and May 2022, with an average buying price of $3.23. pic.twitter.com/rKduzchayb

— Lookonchain (@lookonchain) January 7, 2023

Significant Rise in LDO in 2023

LDO is the governance token of the staking protocol Lido Finance, used to manage various staking service parameters, including Ethereum staking services, with Lido Finance staking a total of 4,851,645 ETH, valued at $61 billion at the time of writing.

After experiencing a decline during the bear market, LDO once dropped below $1. In the first week of 2023, it surged significantly to $1.49 at the time of writing, with a seven-day increase of nearly 50%. On January 5th, Lido announced the launch of "Staking Router" to accommodate a wider range of validator pools and small-scale operators, aiming to increase protocol participation diversity.