LDO Jumped Leaps and Bounds as Jump Crypto’s President Announces Departure, Why?

UTC by Anisha Pandey · 3 min read
LDO Jumped Leaps and Bounds as Jump Crypto’s President Announces Departure, Why?
Photo: Depositphotos

LDO price jumped significantly after Jump Crypto’s president announced his departure from the Chicago-based Web3 firm. Notably, a few members of the digital asset community were ecstatic that the executive decided to leave the firm. 

Jump Crypto has acted as an evil presence for the price action of the LDO token, and members of the crypto sector believe Kariya to be the source of the malevolence. Some crypto influencers also blamed Kariya for being the person behind the collapse of the Terra ecosystem in 2022, which resulted in the onset of the crypto winter and wiped off $40 billion worth of investors’ money.

As per a report from DLNews, at least two dozen people on social media were elated following the announcement from Kariya that he would leave Jump Crypto to focus on personal relationships and be a “patient for inspiration”:

“As for what’s next, I plan to stay engaged with the portfolio companies I’ve been most involved with and hopefully take some time to process the unbelievably eventful few years we’ve had.”

Zach Rynes, Community Liaison at Chainlink, said that Kariya’s departure was a “good riddance” because, under his guidance, Jump Crypto caused the Terra collapse, profiting more than $1 billion in the process. The profits will be used to “fund legal fees” in the firm’s battle with the United States Commodity Futures Trading Commission (CFTC) “instead of going back to TerraUSD victims”:

“These are the wolves in sheep clothing that have leeched themselves onto crypto, extracting billions from retail and attempting to vertically integrate the transaction processing pipeline to their benefit. Being the fall guy doesn’t absolve you of liability.”

Jump Crypto and the LDO Token

The LDO token rallied on Monday after the announcement from Kariya, with the Lido community expressing joy because Jump Crypto sold more than 5 million LDO tokens during the collapse of the Terra ecosystem in May 2022, DLNews said while citing Arkham Intelligence data. By September 2022, the Web3 firm had 6 million LDO, but as of Tuesday, June 25, it had less than 500,000 LDO tokens, implying a significant sell-off.

Jump Crypto sold most of its LDO holdings throughout 2022 and 2023, which resulted in the Lido DAO community turning its back on the firm. According to the data from DefiLlama, Lido is one of the most profitable decentralized finance protocols and currently has a total value locked (TVL) of $32 billion. In the past 30 days, the protocol has generated over $100 million in fees while generating $3 million in the last 24 hours.

On Monday, the day Kariya announced his departure, the daily candle for LDO opened at $2.071 and went as high as $2.479, gaining almost 20%. However, the LDO/USDT pair closed the day at $2.348. In the past 24 hours, the token has dropped 4.04%, wiping off some of the gains from Monday, and is currently priced at $2.35.

LDO Jumped Leaps and Bounds as Jump Crypto’s President Announces Departure, Why?

Photo: TradingView

As per the chart above, the RSI indicator reads a value of 56.68, which means that the LDO token is currently bullish. However, the token is down 7.67% in the last 30 days and up only 21.35% since June 2023, being outperformed by almost every major altcoin in the market.

Altcoin News, Cryptocurrency News
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