Mysterious Institutional Investor Scoops Up Ethereum-Based Altcoin That Rallied 126% This Year: On-Chain Data
A mysterious investor is scooping up an Ethereum-based (ETH) altcoin that has more than doubled up in price so far this year.
According to new data from blockchain-tracking service Lookonchain, an unnamed institution spent $10 million worth of USD Coin (USDC) to purchase 3.4 million Synthetix (SNX), a decentralized asset issuance project, during the last two days.
The data also reveals that the same institutional investor holds 44.5 million Conflux (CFX), worth $15 million, and 7.3 million Yield Guild Games (YGG), worth about $2.07 million.
An institution spent 10 million USDC to buy 3.4 million SNX from [the] Synthetix Treasury in the last two days, the buying price is ~$2.93. The institution holds 44.5 million CFX ($15 million) and 7.3 million YGG ($2.07 million), and is an investor of Yield Guild.
Synthetix is a derivatives protocol that allows users to hold and trade crypto, stocks and precious metals without actually owning the specific asset directly.
Says crypto exchange Gemini,
[Synthetic assets] use decentralized oracles, which are smart contract-based price discovery protocols, to track the prices of the assets represented, allowing you to hold and exchange [them] as if you actually own the underlying assets.
In this manner, Synths provide exposure to assets that are normally inaccessible to the average crypto investor gold and silver, for example and lets you trade them quickly and efficiently.
SNX has seen a significant price increase in 2023. The digital asset opened up the year trading for $1.42 but ultimately sparked a rally up $3.22, a 126% run. SNX has since retraced and is trading for $2.82 at time of writing, a 10% decrease during the last 24 hours.
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This article was originally reported on The Daily Hodl.