A ‚coalition of whales‘ bought 5.5 million DSDs to save $83 million in coupons
Coupon whales DSD have saved their $83 million in assets by taking over the share of a user who continued to keep the price of the token below the $1 anchor
A coalition of Dynamic Set Dollar (DSD) whales has bought out the largest bearish entity in the project, which would steadily force the price of the token below the $1 anchor.
In a message on DSD’s Discord group, the bearish person in Bitcoin Era question, a certain ‚Escobar.eth‘, revealed: ‚I have officially closed an OTC trade by selling 5.5 million DSD to a whale group. I will not stand in the way of further expansion attempts.“
One of the facilitators of the deal and owner of a signature multisig system used by the project, known on Twitter as @_wilske, explained to Cointelegraph:
„Escobar had been choking down the price for some time, I’m not sure what his intentions were but I can assume he was trying to expire coupons. He sold several million (probably around 10 million) to thwart DSD’s price action.“
According to @_wilske, Escobar even prevented DSD’s latest bullish advance by selling 5 million tokens to block an attempted rise above the $1 threshold.
In fact, DSD had not been able to maintain a time-weighted average price, or TWAP, above $1 since the 498 epoch almost a week ago. Reaching a TWAP above $1 is necessary to trigger an expansion phase that distributes rewards to coupon holders, captive token owners and liquidity providers.
The user added that Escobar’s token purchase was aimed at establishing a more capital-efficient way to restore the anchor.
He further explained to Cointelegraph that the coupon whales provided the funds to execute the transaction
With nearly $83 million in coupons at risk, such drastic action is not surprising. The first wave of large maturities is scheduled for epoch 721, 17 epochs or 32 hours away at the time of writing.
Of this $83 million, about $78 million will expire in two huge waves between epochs 721-749 and 756-767. At the current premium of 45.56%, this equates to over 42 million DSD.
As previously reported by Cointelegraph, DSD collapsed to $0.27 during one of its contraction events in late 2020. DSD is part of the category of algorithmic stablecoin projects that have attracted the attention of the crypto industry in recent months.