OlympusDAO’s OHM token is experiencing profit-taking liquidation. Niche DeFi altcoin project OlympusDAO continued its downtrend early Monday morning after a series of profit taking and gradual liquidations. Details on Somanews.
This Defi altcoin is being sold
OlympusDAO’s “decentralized reserve currency,” OHM, is down 30.4% this morning. This niche crypto token was trading around $120 at the time of writing, according to data from CoinGecko. Since New Year’s Day, the coin has dropped 65% overall amid the overall crypto market’s downtrend to 2022. The token has fallen more than 90% since its all-time high of $1,415 in April 2021. Since its inception last year, the OHM token has made waves in the crypto community. This interest was primarily due to the platform’s staking rewards, as well as OlympusDAO’s unique design, which many have called “ponzinomic”. According to Asia-based crypto correspondent Colin Wu, shortly before the last drop, these stake rewards were reported to have offered users up to 190,000%. Now, the rewards are 3,720%.
One of the main reasons for today’s collapse allegedly revolves around an influential trader on Twitter named “el sk” profiting from his important OHM position. An Ethereum transaction circulating on Twitter attributes this trader to the sale of more than $10.5 million in OHM for stablecoin DAI. According to Etherscan, the transaction took place on the decentralized exchange (DEX) SushiSwap at approximately 9 PM on Sunday. Beyond this big sale, data from DeFi project Rari shows a series of liquidations, most of them for leveraged long-term trades at OHM. These liquidations also create significant selling pressure.
What is OlympusDAO? OlympusDAO is a unique crypto experiment where the token is backed by the value of the project treasury. Users can purchase discounted OHM tokens, called bonds, in exchange for DAI or other cryptocurrencies, including wrapped Bitcoin, or liquidity delivery tokens from other crypto exchanges.