Longling Capital sells another 5,000 ETH to cash out $12.76 million, a signal of retreat for crypto whales?
When the price of Ethereum hovered around the $2,552 mark, Cai Wensheng's Longling Capital transferred 5,000 ETH worth $12.76 million to Binance today, suspected of starting a new round of cashing out. After this operation, the institution still holds 88,709 ETH, about $226 million,
But its on-chain behavior has exposed three major danger signals: the average cashing price is close to the low point of the year, the position health rate is only 1.82, and the liquidation risk threshold has been raised to $1,048.
This sell-off coincides with two key nodes. First, after the launch of the Hong Kong New Capital Investor Entry Program, high-net-worth individuals have accelerated the allocation of Hong Kong dollar assets; second, Meitu received a strategic investment of $250 million from Alibaba, and Cai Wensheng needs to recover funds to balance the risk exposure of his AI-Web3 real estate projects and cryptocurrency holdings. Judging from the on-chain trajectory, Longling Capital has made a profit of $33.67 million by buying low and selling high ETH in the past six months, but the current floating loss has expanded to $30.48 million, forcing it to choose to partially stop profit.
This cashing out coincides with the transition period of Meitu's comprehensive divestment of cryptocurrency assets and focusing on the AI imaging track. In the agreement of Alibaba's $250 million war investment in Meitu, it is clearly required that Meitu purchase 560 million yuan of computing power services from Alibaba Cloud within three years, which may force Cai Wensheng to accelerate the cleanup of non-core assets to prove strategic focus to the capital market.
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