Blockchain Capital, a prominent venture firm in the blockchain industry, has reportedly sold a significant amount of liquid staking derivatives (LSDs) ahead of the Ethereum Shanghai Upgrade. The transactions were reported by Lookonchain, a leading blockchain analytics platform.
According to Lookonchain, Blockchain Capital sold 1.5 million LDO worth $2.52 million and 65,352 RPL worth $2.9 million. Following the sale, the firm no longer holds any LDO but holds only 107,085 RPL valued at $4.52 million.
It was reported that Blockchain Capital bought 1.5 million LDO with 1,000 ETH between January 27 and February 21, 2022. The value of the ETH used in the transaction was $2.52 million, and the average price of the LDO tokens bought was $1.64. The firm sold all the LDO it acquired during this period at $2.33, earning 1,871 ETH in the transaction, with a value of $3.57 million, reflecting a profit of $1.05 million.
Similarly, Lookonchain noted that on April 15, 2022, Blockchain Capital bought 59,236 RPL using 2 million USDC at $34 per RPL. Before this transaction, the venture firm bought 61,539 RPL using 600 ETH, valued at $2.15 million. It executed the transaction on October 8, 2021, when the price of RPL was $35.
From its total holdings, Blockchain Capital sold 65,352 RPL at $44 per token and earned 1,522 ETH valued at $2.9 million. Based on the price of ETH at the time of the report, Blockchain Capital made a profit of almost $1.09 million in the RPL transaction.
The Ethereum Shanghai Upgrade has now been activated, and users expect volatility in the cryptocurrency market. Big investors like Blockchain Capital could play significant roles in how the market develops in the coming hours.
Blockchain Capital’s decision to sell off LDO and RPL before the Ethereum Shanghai Upgrade has attracted attention from industry experts. The move suggests that the firm is taking a cautious approach to the market, and it may have identified potential risks associated with the upgrade. However, it is also possible that the firm is simply taking advantage of the current market conditions to maximize its profits.
The sale of LDO and RPL by Blockchain Capital has also raised questions about the future of these tokens. LDO is a liquid staking derivative that allows users to earn staking rewards while maintaining the liquidity of their tokens. RPL, on the other hand, is the native token of Rocket Pool, a decentralized staking platform. Both tokens are expected to play a significant role in the Ethereum ecosystem, and their value is likely to increase in the coming months.
Overall, the sale of LDO and RPL by Blockchain Capital is a significant development in the cryptocurrency market, and it highlights the importance of monitoring the activities of big investors. As the market continues to evolve, it is likely that we will see more such transactions, and it will be interesting to see how they impact the market as a whole.
