Speculation Arises That Institutional Whales May Have Manipulated the Price of an Altcoin

A notable $AAVE movement in the cryptocurrency market has raised questions among investors.

According to on-chain data, yesterday morning, crypto investment company Multicoin Capital transferred approximately 150,000 $AAVE tokens (worth approximately $14.91 million) to exchanges via Galaxy Digital and BitGo. Following these transfers, the price of $AAVE dropped by about 7%, from $99 to $92.

After the price dropped to $92, some notable new transactions occurred. According to the data, Galaxy Digital withdrew approximately 98,000 $AAVE tokens (worth approximately $9.08 million) from various exchanges and transferred them back to addresses linked to Multicoin Capital. Following these transactions, the $AAVE price slightly recovered, rising to the $93 level.

Two different scenarios are now being discussed in the market. The first possibility is that Multicoin Capital implemented a short-term trading strategy by selling at high levels and buying back at lower prices. The other possibility is that institutional platforms like Galaxy Digital borrowed $AAVE from Multicoin, sold them on the market, bought them back at lower prices, and then returned them.

*This is not investment advice.