BitMEX Founder Arthur Hayes Sells 230,000 GMX Tokens, Nets $3.2M Profit

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Cryptocurrency magnate Arthur Hayes, renowned for his founding of BitMEX, sent tremors through the virtual currency ecosystem with a prominent move on a significant amount of an altcoin – GMX tokens – he’d been sitting on since 2022. His calculated maneuver sends a massive parcel of over 230,000 GMX tokens to the digital wallets of Wintermute Trading platform, apparently turning an impressive profit of $3.2 million in the process.

Unveiled by blockchain research heavyweight Lookonchain, Hayes’ speculated disposal of his GMX holdings caused quite a stir, given that he held the distinguished position of being the most sizeable personal holder of GMX. This bespoke digital token acts as the linchpin for the decentralized perpetual exchange GMX.

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During the course of 2022, Hayes had comprehensive plans for strengthening his grip on the market. To achieve this aim, the BitMEX originator committed a total of 3,383 in ETH, amounting to a hefty $5.17 million, to the purpose of acquiring 200,581 GMX tokens. The following year, sanctions of another 60 ETH were used to buy an additional 2,328 GMX, equivalent to approximately $105,000.

In the second half of 2023, July to December to be exact, Hayes meticulously withdrew a staggering 215,428 GMX tokens from centralized exchanges, also known as CEX. By the close of the year, he’d accumulated as many as 218,337 GMX for a sum of $6.5 million from both CEX and its decentralized counterpart, the DEX Uniswap.

As of April 7, 2024, Hayes was sitting on a formidable GMX treasury, amounting to a cool $9.7 million in value according to Lookonchain data. It was disclosed that Hayes made the strategic choice to unbundle all 237,672 tokens, migrating them to an address associated with the respected virtual trading juggernaut, Wintermute Trading.

This large-scale transfer ignited a saying among crypto circles about potential token sale arising around the former chief executive of BitMEX. The report deduced that the average cost incurred by Hayes during his token collection phase rounded off to approximately $29.74. After selling, it is inferred that Hayes could sit back and admire his profit stack that would have swelled by over $3.2 million.

Despite staunch investors in GMX maintaining their optimism by proclaiming that “nothing changed” and that the altcoin was predictably landing in that “buy zone” once again, speculative murmurs couldn’t be avoided. Noted cryptocurrency trader and analyst JJcycles posed a provocative question – did Arthur Hayes show the white flag of defeat?

Rather intriguingly, he proposed that Hayes’ transaction might indicate a surrender. Going forward, the trader curiously pondered why the GMX price didn’t suddenly nosedive after one of its biggest personal holders put up his hoard for sale. To JJcycles, the situation bore striking resemblance to the psyche-shattering price of ETH during the FTX fiasco. Motivated by this theory, the trader announced he would be investing in further GMX tokens.

The GMX token seemed burdened with weak performance across various timelines, landing at 55.5% less than its stratospheric all-time-high of $91.07. Its value registered a descending 7.9%, 28.9%, and 48.9% impact on the weekly, monthly, and yearly timelines. The news of Hayes’ transaction caused an abrupt drop in its price, going down from the $40.8-$40.7 zone to $37.1, falling 9% within a mere hour.

However, the resilient altcoin bounced back swiftly from the initial tumble. At the time of writing, GMX is holding steady at $40.47, signaling only a 1% dip from 24 hours ago. Intriguingly, market activities around the token saw a dramatic 467.6% surge, with daily trading volumes reaching upwards of $54.77 million.