Big Yield Guild Games (YGG) Price Crash Anticipated Amid $6.7M Transfer to Crypto Exchanges

Key Takeaways:

• YGG surged 250% but hinted at a decline.
• The trading volumes dropped against the surging market cap. Wintermute and other large investors dump the token.
• Why did the coin surge in the first place?

YEREVAN (CoinChapter.com) – Yield Guild Games (YGG) token price surged 250% in a week to trade near $0.56 on Aug 7 despite the crypto sector’s prevailing bearish bias.

Notably, the coin peaked at an 11-month high of $0.66 on Aug 6 before correcting south, and the gradually dropping trading volumes speak of an approaching decline in price. The trading volumes dropped 26% in the previous 24 hours, reaching $486 million, while the market cap increased by 17%, standing at $161 million.

But trading volumes might be the least of YGG’s worries, as Wintermute, the leading global algorithmic trading firm in digital assets, might have dumped the coin, triggering a selloff.

Wintermute dumps $6.7M of YGG

According to the on-chain tracker LookOnChain, the YGG price surge was accompanied by significant activity in the platform’s wallet transfers. Wintermute Trading, for instance, deposited 11.1 million YGG ($6.7 million) to exchanges in the past four days and currently holds 2.5 million YGG, equivalent to $1.5 million).

According to CoinMarketCap, another investor, Youbi Capital, also deposited 1 million YGG worth $613,000 to Binance on Aug 6 and currently holds another 11.6 million YGG worth approximately $ 7.11 million. 

Several other investors, including Sfermion and BITKRAFT Ventures, have made large deposits to Binance through FalconX.

Additionally, the coin tracker asserted that in the past year, investment firm DWF Labs received over 29.13 million tokens from YGG Treasury worth $16 million and allegedly transferred all of them to exchanges.

Generally, large deposits onto exchanges signify an investor’s willingness to swap the token for other assets.

The latter is also true for whale investors holding the coins in bulk, such as Wintermute and other VCs mentioned. Smaller retail investors tend to follow the whales, copying their behavior. Understandably, smaller investors consider the whales more informed and “in the loop.”

Regarding YGG, whales hold the wheel, as they have nearly 90% of the token supply in their pockets.

Why did YGG Price surge in the first place?

Yield Guild Games announced the launch of the Guild Advancement Program (GAP) season 4.

Some of the community’s most recent top picks are joining the fold this season, with all-new quests for guild members to dive into as they hone their skills and establish their web3 reputation. The season will officially begin on August 3, 2023, and will run until September 27, 2023.

added the YGG team in the press release.

Mark Tan, Head of Community Products, also clarified that historical player records from more than 1,200 guild members will turn into “experience points.” The executive said these experience points will also serve as a basis for unlocking YGG privileges in the future.