At 3 AM, the on-chain data suddenly exploded—within half an hour, the WLFI project party transferred 485 million tokens to two wallet addresses of Jump Crypto in two transactions! This is not an ordinary transfer, brothers, this is a blatant "chip migration," and the upcoming market situation is likely to change drastically.
Old Ma is increasingly alarmed as he stares at the on-chain records: The first transaction of 230 million tokens was sent out at 02:17, followed closely by a second transaction of 255 million tokens at 02:42. The transfer address is clearly marked as the official WLFI treasury, and the recipient is a market maker wallet under Jump Crypto. The speed and amount of these actions clearly indicate premeditation.
Market makers taking over? Or is the "harvesting scythe" already sharpened?
Some brothers may think: "Jump Crypto is a large institution, taking over means they are optimistic about the project." But Old Ma must pour cold water on you—don't forget Jump Crypto's "dark history"!
Just last August, after this institution received approval for the Ethereum ETF, they immediately sold off $300 million worth of ETH, directly causing Ethereum to plummet 25% in one day, from $2800 to $2100. Even more ruthless, during the Terra collapse case, they were accused of conspiring to manipulate the UST price, making $1.3 billion from that alone. Now that these 485 million WLFI tokens are in their hands, do you think they are here to be good Samaritans?
What is even more concerning is that currently, 97% of Jump Crypto's positions are stablecoins. This means they have ample ammunition to first pump and then dump—their strategy could be to use a small portion of funds to push the price up, attracting retail investors, and then dump these 485 million tokens onto the market in batches like they did with ETH. At the current price of $0.22, these chips are worth over $10 million, enough to create a big pit in the secondary market.
How terrifying is the selling pressure behind these 485 million tokens?
Let's do the math: 485 million tokens account for 1.97% of the total circulating supply of WLFI. It may not seem much, but you should know that as a market maker, Jump Crypto has no lock-up restrictions. Based on their previous pace of selling ETH, they could dump $300 million worth of chips in just 10 days. Now, this $100 million worth of WLFI could possibly enter the exchanges within a week.
Last night, someone in the community fantasized that "institutions are going to pump the market," and Old Ma felt a chill seeing that. Just look at the historical data: In 2022, after Jump invested in a certain project and took over 500 million tokens, they first pumped the price by 30%, and as retail investors chased in, they immediately started dumping, resulting in an 80% drop in price before it stabilized. This kind of "first give candy, then feed poison" trick, they play better than anyone.
What's even more fatal is that these 485 million tokens are just the beginning. Among the previously announced circulating supply of 24.6 billion tokens, there are still 17.7 billion tokens in the hands of large holders that haven't moved. Now that the project party dares to transfer the chips to Jump, it shows they are confident in controlling the price—either they are confident in supporting the market, or they are ready to harvest.
How should retail investors respond? Keep a close watch on these three signals!
Old Ma highlights the key points for the brothers: you must keep a close eye on these three indicators next.
1. Exchange recharge warning: If Jump's wallet starts transferring to exchanges like Binance and Coinbase, even if it's just 50 million tokens a day, it’s a dangerous signal. Last time they sold ETH, it was transferred little by little like that.
2. Changes in liquidity of the capital pool: Currently, there is about $200 million in liquidity in the WLFI DEX capital pool. If more than $30 million flows out in a single day, it indicates that the dumping has started, and it's time to withdraw!
3. Price support level break: $0.2 is a key defense line, and if this level breaks, panic selling will swarm out like during the 2022 Terra collapse. Brothers holding assets must set stop-loss at this level.
Don't fantasize that "holding long-term will allow you to break even." Jump Crypto is currently not doing well—they are under investigation by the CFTC, reducing their business, and have laid off nearly 20% of their employees. At times like this, when they take on chips, it’s highly likely that they are looking to cash out quickly and won’t consider long-term value.
Old Ma will say one honest thing in the end.
The current market environment is reminiscent of the rhythm before the FTX collapse in 2022—institutions hold more chips than anyone else, while retail investors are still fantasizing about a bull market. Jump Crypto taking over WLFI may either mean the project party offered them a high rebate to help unload, or they are preparing to play the old trick of "pump and dump."
If you don't have a position, don't touch it! Entering the market now is no different from catching someone who is jumping off a building. If you have a position, reduce your holdings during a rebound, don’t wait to be cut by Jump's scythe. Tonight at 8 PM in the live stream, Old Ma will post the on-chain addresses of these two Jump wallets and teach everyone how to monitor their movements in real time.
Is it a trap or an opportunity? Share your thoughts in the comments! Follow Old Ma, so you don’t step into a pit at critical moments!
