In recent hours, a significant transaction has taken place involving the cryptocurrency Ton ($TON). A liquidity provider has made a notable move by withdrawing all its $TON tokens from a trading pool on a decentralized exchange. This decision to pull out has led to a large sale of 356,545 $TON tokens, according to Lookonchain.
A $TON liquidity provider removed all liquidity of $TON and sold 356,545 $TON($1.98M) at $5.57 in the past 4 hours. #TONCOINAddress:0xaba6b18cbcd388745f6b0de936495cb90dbc80d2 pic.twitter.com/rS98WwXYOy
— Lookonchain (@lookonchain) August 26, 2024
Massive $TON Sale Drains Liquidity Pool, Trading Impact Expected
The total value of the sale was approximately $1,980,000, which means that each $TON token was sold at $5.57. This extensive sale was completed in few hours and testified to a rapid and cardinal transition in the market. In traditional terms, it has restrained their liquidity, lowering the chance of having more $TON tokens to trade in the market.
Liquidity provider is usually a person or company offering assets for trading in the pool to cover buying and selling operations in the exchange. In this case, the reduction in $TON liquidity means that the provider has made a decision to leave the position. This action decreases the overall circulating supply of $TON which might affect its trading volume and price fluctuations.
$TON High Price Used for Profit-Taking Before Market Changes
The timing and the size of this sale imply that the liquidity provider expects the price of $TON to likely reduce, or the provider is capitalizing on the prevailing market trends.
The decision to withdraw liquidity and sell that much of $TON, reported by Lookonchain, can only mean the liquidity provider in the market saw an opportunity in the current market. As Ton ($TON) is at a high price, this may be an attempt to make as many sales as possible and earn more profit before the market changes.
