Fenbushi Capital, a blockchain-centric venture capital (VC), appears to be cashing in after transferring four tokens, including Aave (AAVE) and Compound (COMP), to Binance. The VC is transferring these tokens to the exchange, possibly to sell and lock in their profits or reduce losses when market participants expect prices to rise.
Fenbushi Capital cashing out? Send AAVE, UNI, SNT and COMP tokens to Binance
After the series of lower lows following the peak in cryptocurrency prices, particularly in the first quarter of 2024, the consensus is that Bitcoin and Ethereum prices are ready to turn the corner. If Bitcoin breaks above $70,000 and Ethereum rises above $3,000, overcoming recent weakness, they could lift other less liquid altcoins, including those that Fenbushi chose to send to Binance.
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According to the network datathe VC transferred 146,537 UNI worth $1.12 million, over 10.1 million SNT worth $244,000, 10,681 COMP worth $510,000, and 11,616 AAVE worth $1.89 million for Binance. The VC secured over $1.20 million in profits assuming they sold all of these tokens at spot rates.
Out of all these tokens, their AAVE holdings have seen them earn over $1.1 million in profits. However, at spot rates, they are in red due to their COMP holdings. COMP is the native governance token of Compounda lending protocol.
Fenbushi received these tokens almost two years ago in 2022, months after most of them reached record levels in the last DeFi and NFT-driven bull run. At the time of writing, no statement from Fenbushi explained its decision to transfer the majority of these DeFi tokens to the exchange.
DeFi Rise and Protocol Building: Wrong Time to Exit?
Whenever coins are moved to a centralized exchange, it can signal weakness and be seen as bearish. However, considering the current crypto sentiment, Fenbushi raises eyebrows and could slow down the uptrend.
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According to DeFiLlamathe total value locked (TVL) in DeFi protocols is over $88 billion. At spot rates, TVL is up more than 100% from 2022 lows of around $36 billion.
Other than that, Aave, Uniswap, and Compound are some of the biggest platforms. Aave manages over $12.7 billion in assets, while Uniswap controls over $4.8 billion.
In addition to the sharp increase in total DeFi TVL, these protocols are also being actively built. Uniswap, the decentralized exchange, plans to launch its v4 in the coming months, while Aave actively attracts new users. By the end of September, the loan application had received close to US$20 billion in user deposits, consolidating its position in DeFi.
Featured image from iStock, chart from TradingView
