YGG Surged 580% Before Crashing, Why Are Whales Rapidly Selling?
08 August 2023 - 11:00AM
NEWSBTC
The Yield Guild Games (YGG) token recently surged, rising by 580%
in less than a week before crashing, as visible in the daily chart.
YGG is currently changing hands at $0.37 with a market
capitalization of over $101 million when writing on August 7.
Prices have since retraced from the $0.99 recorded earlier today as
the token fell by over 60%. The recent spike and general volatility
have seen trading volumes soar as trading activity is concentrated
on Binance and KuCoin. YGG Whales Dumping Amidst the notable
growth, there are reports of venture capital (VC) companies that
initially backed the project, backing off and reportedly selling
the token primarily on Binance. For instance, Lookonchain data on
August 7 shows that Bitkraft Ventures and DWF Labs have moved their
YGG to Binance and will likely sell. Last year, DWF
Labs received 29.13 million YGG from Yield Guild Games
Treasury. However, on-chain data shows that most of these tokens
have since been moved to exchanges. Related Reading: Shiba
Inu Sees 10% Pullback, But Here’s Why Rally Can Still Continue
Bitkraft used Wintermute and FalconX to move coins to Binance.
Trackers show that the official Wintermute Trading wallet
has deposited 11.1 million YGG to exchanges over the past four
days. The crypto market maker still holds 2.5 million YGG.
Youbi Capital has also deposited 1 million YGG to Binance.
Currently, it holds 11.6 million YGG. Sfermion is also joining the
selling bandwagon, which initially claimed 1.2 million YGG. It used
FalconX, a provider serving crypto whales, to deposit the token to
Binance. Partnership With Axie Infinity Developer Yield Guild Games
is a gaming guild primarily focusing on play-to-earn (P2E)
blockchain games. As a community, the platform uses non-fungible
tokens (NFTs) and has created a collaborative network of players
and investors to navigate NFT gaming. In mid-July,
YGG partnered with Axie Infinity’s developer to release
SUPERQUESTS. The feature, Yield Guild Games said, aims to enable
guild members to engage in web3 games and earn enhanced in-game
rewards. They added that this initiative was a significant step
towards improving the web3 gaming experience for
members. Related Reading: Ripple Is Now A Member Of
Trade Organization That Hosts The Likes Of BlackRock Over the
months, NFT, metaverse, and blockchain gaming activity have rapidly
contracted as token asset prices fell throughout 2022. Furthermore,
fears of regulatory crackdown appear to be discouraging developers.
In June, the United States Securities and Exchange Commission (SEC)
cited AXS by Axie Infinity as an example of unregistered security.
Feature image from Canva, chart from TradingView
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