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Cryptocurrency News Articles
Rune Christensen, Founder of Sky (Previously MakerDAO), Sells All 2.04M ENA Tokens He Claimed Hours Before for 744k USDC
Oct 23, 2024 at 06:00 pm
This transaction marks a significant movement a week before, with his redeeming 22.08 million USDe into USDT.
Rune Christensen, the founder of Sky (formerly known as MakerDAO), has sold all 2.04 million ENA tokens he had claimed just a few hours earlier for 744,000 USDC, as reported by SpotOnChain. This transaction highlights a significant movement, especially considering Christensen's status as one of the top holders of USDe and his recent redemption of 22.08 million USDe into USDT.
Ethena Labs has taken an innovative approach with its synthetic stablecoin, USDe, which is pegged to the US dollar but operates differently from traditional stablecoins like USDC or USDT.
Backed by assets such as Bitcoin and Ethereum, USDe maintains its peg through delta hedging—a strategy that uses derivatives to manage the collateral risk arising from the changing value of the crypto market. This approach is designed to ensure that USDe maintains a stable value despite the inherent volatility of the crypto market.
Ethena Labs has also been creative in introducing a synthetic dollar alternative that doesn't rely on traditional financial institutions. The ENA token plays a role in this ecosystem, allowing holders to participate in shaping the evolution of the protocol.
However, Rune Christensen's decision to sell all his ENA tokens immediately after acquiring them suggests a shift in his perspective or strategic direction. Notably, he also chose to redeem a large amount of USDe a week ago, indicating a broader reassessment of his position with Ethena Labs.
While some investors remain optimistic about USDe's potential, the challenges are evident. The stablecoin's reliance on derivatives and centralized exchanges for liquidity raises concerns about counterparty and liquidity risks.
Ethena Labs has attempted to mitigate these worries through partnerships with custodians and off-exchange settlement options. However, questions persist regarding the long-term sustainability of their approach.
On a related note, CNF earlier reported that Ethena had proposed introducing Solana (SOL) and a variant of liquid staking as additional collateral for USDe. This move is seen as an effort to enhance the scalability of USDe by incorporating Solana, which could potentially add billions of open interest through perpetual futures.
At the time of writing, ENA is trading around $0.3721, down 4.06% in the past 24 hours and 16.06% over the last 7 days.
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