Decentralized finance pioneer Stani Kulechov no longer has an appetite for his Lido Finance investments.
On-chain sleuth “Lookonchain” has reported that the Aave founder has sold the last of his remaining Lido Finance tokens.
Furthermore, Stani Kulechov was a seed round investor in Lido Finance. Lido is the largest Ethereum liquid staking platform, with $5.9 billion in staked assets.
On Dec. 21, Kulechov sold the remaining 715,000 LDO tokens, according to the Etherscan wallet explorer. The transfer was valued at around $667,269, according to Lookonchain.
Additionally, the Aave founder has now sold all of his 2 million LDO tokens allocated in December 2020. The average selling price was $1.21 the on-chain analysis feed reported.
No More Love For Lido
According to the charts provided, Kulechov made eight sales of LDO tokens in 2022. Some of them were at market bottoms, such as the most recent sale.
Lido Finance raised $73 million in May 2021 in a funding round led by Paradigm and Coinbase Ventures. Furthermore, participants also included the now-bankrupt Three Arrows Capital and Alameda Research.
Lido had another funding round in March 2022, when it raised $70 million led by Andreessen Horowitz. Its most recent fundraising was in September, when it made $24 million in a round led by Dragonfly Capital, according to Crunchbase.
Lido Finance has become the second largest Ethereum staking platform after the Beacon Chain itself. Therefore, it’s unclear why Kulechov has decided to dump tokens for a successful platform. His latest baby is Lens Protocol, a blockchain-based web3 social media platform.
Lido’s staked Ethereum token, stETH, depegged from Ethereum in November, triggering fears of another liquidity crunch.
LDO Price Outlook
The Lido DAO token has not been performing well recently, but the same can be said for most DeFi tokens.
LDO has dropped 3.8% on the day in a fall to $0.922 at the time of writing, according to CoinGecko. The broader crypto market is flat today, so Kulechov’s dump may have triggered the selloff.
Furthermore, LDO has declined almost 19% over the past week. The token is currently down 87.4% from its August 2021 all-time high of $7.30.
Ethereum staking continues to gain traction, however, and Lido Finance has $5.8 billion in staked ETH earning a yield of 4.8%. Comparatively, there is $19 billion worth of Ethereum staked in total, giving Lido a 30% share of all staked ETH.
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