Trend Research Offloads 404,090 ETH as Price Plummets 30%
Ethereum investment vehicle Trend Research has unwound a significant portion of its holdings, reacting to a market downturn that brought prices precariously close to its loan liquidation points. The firm's Ether holdings cratered from approximately 651,170 ETH to 247,080 ETH on Friday. Blockchain data from Arkham confirms that Trend Research transferred 411,075 ETH to the Binance exchange since the start of the month to deleverage its position.
This risk management occurred as Ethereum’s price collapsed by nearly 30% over the past week, hitting a low of $1,748 on Friday. The substantial asset movement from a major holder introduced significant supply-side pressure, contributing to market instability as the firm sought to avoid forced liquidations.
Leveraged ETH Bet Unwinds Near $1,700 Liquidation Point
Trend Research, linked to Liquid Capital founder Jack Yi, employed a leveraged strategy that involved purchasing ETH, using it as collateral on the DeFi platform Aave to borrow stablecoins, and subsequently buying more ETH. This cyclical borrowing amplified its exposure but also increased its risk profile. According to Lookonchain, the firm faces multiple liquidation triggers on its debt positions, ranging between $1,698 and $1,562 per ETH.
Despite the forced selling, Yi stated he remains bullish on the market's long-term prospects but acknowledged calling a bottom too early. In a post on X, he emphasized a continued focus on risk management while awaiting a market recovery.
I called for a bottom in crypto valuation too early and will continue to wait for a market recovery while managing risk.
— Jack Yi, Founder of Liquid Capital
