Ethena Season 4 will end this month, and as always, it frequently releases positive news before the points end.
On 9/6, StablecoinX, which is purchased as a crypto reserve $ENA announced to raise another $530 million for purchasing ENA from a subsidiary of the Ethena Foundation.
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Interestingly, the purchase plan sets $0.7 as the dividing line between the two purchasing options.
If ENA > $0.7, then purchase $5 million daily.
If ENA < $0.7 or ENA drops > 5% within 24 hours, then purchase $10 million daily.
In other words, general users may default the key price level in the open market at $0.7, and the extent of the drop may narrow.
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Don't forget that StablecoinX has previously raised 3.6 million USD to purchase ENA reserves, and with this additional 530 million USD, the total has reached 890 million USD.
What does 890 million USD mean?
Approximately 3 billion ENA, which is about 43% of the current circulation of 6.9 billion, and 20% of the maximum supply of 15 billion. (Circulation data sourced from Binance - token information)
According to the official announcement:
The funds raised in the first round have already acquired about 7.3% of the token circulation in the past six weeks.
In the next 6-8 weeks, there are plans to repurchase about 310 million USD of ENA.
Additionally, according to Cointelegraph reports, the new round of funding for StablecoinX includes several well-known investors, including: YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading.
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Summary
By setting 0.7 USD as the boundary for executing purchases, it can effectively encourage market users to view 0.7 USD as a gaming point for trading operations.
However, in fact, according to the announcement of the first fundraising, the purchase plan for StablecoinX is not entirely based on market price transactions, but rather discounted and locked ENA.
Regarding the second round of fundraising, it is unclear whether it is also a discounted purchase, but the recent purchase plan has announced that it will be bought through third-party market makers, in other words, the short-term market price may be more driven by general user transactions.
Of course, for someone like me who is purely participating in the Ethena airdrop, what needs to be paid more attention to is the scalability of USDe itself and the yield of sUSDe. However, if holding sENA (staking ENA in Ethena), one can pay special attention to recent price changes.
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※Ethena code:
eu54u
※ The above content does not constitute investment advice. Users should operate based on their own risk tolerance, and DYOR should participate in the investment market with caution.
※ The attached images include self-made graphics as well as those sourced from Ethena and Cointelegraph.
