Cypherpunk sells off Bitcoin and Ethereum Holdings Due to Crypto Sell Pressures
- Reflecting on the development, the President and CEO of Cypherpunk, Jeff Gao revealed that the decision is a reactive measure and a necessity due to the increasing volatility of the market.
In a bid to dodge the ravaging dip in the cryptocurrency market, Investment firm Cypherpunk holdings have sold off the entirety of its Ethereum and Bitcoin holdings. Reportedly, the firm let off about 205.8209 ETH for $227,000 and 214.7203 BTC for $4.7 million.
However, the firm revealed that it currently owns approximately $14.1 million in cash and stablecoins. Additionally, the company has additional structured products with a 30 days redemption note.
Cypherpunk Feels the Crypto Market Pressures
The company perceived it as a necessity to let off its holding in Bitcoin and Ethereum because it could no longer bear the losses. Above all, Cypherpunk refused to disclose how soon it will return to invest in Bitcoin and Ethereum.
Reflecting on the development, the President and CEO of the organization, Jeff Gao revealed that the decision is a reactive measure. He disclosed that the firm was forced to sell off its Ethereum and Bitcoin due to the current dip.
Gao noted that the cryptocurrency market at the moment is quite dangerous for most investors due to the increased volatility. However, the CEO stressed that the organization will retain a long-term bullish stance in the cryptocurrency market.
Additionally, the CEO indicated that it is vital for the organization to monitor the current situation of the market. Gao added that Cypherpunk is waiting to see the concluding part of the ongoing dip.
He stressed that it’s quite troubling for investors to see trading platforms suspend the withdrawal of funds due to the negative effect of the dip. Gao conceded that Cypherpunk will not give up on cryptocurrency, instead, the organization will not hold back to invest in the industry if the opportunity arises.
“We believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion,” said Gao in the statement. “On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases,” he added
Also reflecting on the development, Cypherpunk CIO, Moe Adham, admitted that the cryptocurrency industry is currently in a risky state. Adham opined that there’s a huge possibility for the market to dip further than what has manifested.
The CIO divulged that the decision to sell its BTC and ETH holdings is in the best interest of investors of the firm.
Adham said the development will help the organization maintain a strong position for future investment when the market recovers. Yet, Adham refused to give insight into the possible recovery state that will compel Cypherpunk to invest again in cryptocurrency.
Cypherpunk is a leading firm for blockchain and metaverse investment, With its headquarters in Ontario, Canada. The company scouts for potential initiatives within the crypto industry that possesses dominant privacy characteristics.
This month, Bitcoin dipped to an all-time low of $17,706, while Ethereum recorded a lowly $896.1 due to the increasing volatility of the market. So far, Firms within the space have felt the negative impact of the dip, which has resulted in a massive layoff of their staff.