Before its recent rally, ApeCoin (APE) was one of the worst-performing tokens, losing as much as 60% of its value in November. According to LookOnChain, the decline was caused by the project’s treasury selling its APE reserves. As per the Twitter user, the “ApeCoin treasury has been selling APE in small amounts.”
On-chain data shows that ApeCoin Treasury has been selling $APE in small amounts.
Treasury Cashing Out
While ApeCoin has seen an impressive run over the last few weeks, the +17.48% weekly ROI vs. USD tempts many investors to flee. A recent analysis revealed some shocking truths about the ApeCoin treasury that could spell trouble for the token’s price.
Furthermore, ApeCoin appears to be in trouble after on-chain investigators found some unusual transactions by ApeCoin Treasury. Lookonchain, a smart money tracking and on-chain analysis account, recently discovered that the ApeCoin treasury has been selling APE tokens in small amounts.
In a series of tweets, the user reveals that a wallet of the ApeCoin treasury transferred 4.6 million APE, worth $19.7 million, in the early hours of Nov. 30. From the looks of it, there is a distribution of a considerable number of APE tokens among various addresses.
Additionally, the user notes that 4,552,447 APE was sent to the address “0x876c,” and 47,552 APE was sent to the address “0xa29d”. According to LookOnChain, 5 ApeCoin Treasury wallets sent APE tokens to Coinbase, Binance, FTX, and KuCoin through the address “0xa29d” for sale.
In addition, around the same time on Wednesday, another four ApeCoin treasury wallets used the same method to sell APE. There were selling nearly 20,000 APE worth $85,399 by these wallets.
Consequently, there was a transfer of 99.8% of the APE to a new address every time and then the moving of 0.2% of the APE to exchanges for sale.
The Trends in the Apecoin Prices
Over the last week, APE has witnessed significant gains. Moreover, the token is currently up 24.9% on the weekly charts. The surge can be attributed to the announcement of APE staking rewards.
APE price was still up by 23.80% on the weekly window, but the recent sell-offs can spell trouble for APE price action. Looking at the token’s on-chain metrics can help assess where the price is going in the short term.
However, active deposits plateauing and inflows dominating it suggest that tokens were being sent to exchanges, showing a bearish trend.
Final Thoughts
At first glance, the ApeCoin project is actively selling its holdings while trying to hide its tracks by constantly using new addresses before sending funds to various cryptocurrency exchanges.
The performance of APE on the market confirms this thesis as it swiftly lost more than 60% of its value in no time. Despite a 60% recovery from the bottom, APE still has a long way to go before returning to pre-dump levels.
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