Global digital asset market maker DWF Labs is a company known as much for its investments in altcoin projects as for its sales, and for this reason, it is closely followed by market participants. On-chain data provider Spot On Chain reported that DWF Labs has made substantial sales in 2 altcoins on Binance in the last 3 days. Here are those altcoins and what the on-chain data suggests.
Sold FET and AUCTION on Binance
On-chain data provider Spot On Chain reported that DWF Labs deposited a significant amount of FET and AUCTION into the major cryptocurrency exchange Binance in the last 3 days. According to the data, the global digital asset market maker deposited 2 million units of FET worth $1.35 million at $0.675 each into Binance in the last 24 hours. The company currently holds 5.05 million units of FET valued at $3.43 million and is facing an unrealized profit of $2.27 million.
Furthermore, according to on-chain data, DWF Labs transferred 145,754 units of AUCTION worth $3.75 million to Binance 2 days ago and sold them at $25.7 each. The company made a profit of $2.21 million from this transaction.
Why Would a Market Maker Company Sell Altcoins?
Just like in traditional markets, market maker companies in the cryptocurrency market, such as DWF Labs, generally operate with the aim of providing liquidity to the markets, facilitating trading transactions, and maintaining market order. These companies increase liquidity in the market by narrowing the gap between the buying and selling prices of an asset. However, there can be various reasons why market makers might sell assets.
Risk management, changes in investment strategy, capital management, financial situation improvement, regulation, and compliance are some of the issues that can lead market makers to sell assets.
The decisions of market makers to sell assets are often shaped by a combination of a series of internal and external factors. Various factors such as the company’s strategic goals, risk tolerance, market conditions, and regulations can be influential in making such decisions.
