A significant investor’s wallet recently reactivated after six months of dormancy, making waves by withdrawing 1.48 million $UNI, valued at $10.4 million, from Coinbase Prime just two hours ago.
This wallet now holds a substantial 3.91 million $UNI, worth approximately $27.2 million.
This isn’t the first time this wallet has made large moves. In February and August 2024, the investor withdrew 3 million $UNI from Coinbase at an average price of $6.89 per token, totaling $20.6 million.
Additionally, the wallet received 911,000 $UNI tokens, unlocked from the Uniswap treasury in September 2020, and transferred in February 2024, when the price was $7.74, equating to $7.05 million.
A likely investor's wallet just reactivated after 6 months and withdrew 1.48M $UNI ($10.4M) from #Coinbase Prime ~2hrs ago.
Now, this wallet holds 3.91M $UNI ($27.2M), with:
• 3M $UNI withdrawn from Coinbase at ~$6.89 ($20.6M) in Feb and Aug 2024;
• 911K $UNI unlocked from… pic.twitter.com/o0kuNmNuzg
— Spot On Chain (@spotonchain) August 22, 2024
Despite these sizable investments, the UNI token’s utility remains a topic of debate within the crypto community. Aerodrome, a central trading and liquidity marketplace on the Base network, has expressed skepticism about UNI’s value, suggesting that the token is “near useless.” Initially introduced to incentivize liquidity providers (LPs) and fund Uniswap Labs, UNI has struggled to deliver tangible value to its holders. Without the activation of a fee switch, which would allow UNI holders to earn a share of trading fees, the token’s utility remains constrained, leaving the decentralized exchange (DEX) ecosystem vulnerable to competition.
The UNI Token is Near Useless:
The UNI token was introduced to incentivize LPs and fund Uniswap Labs, but it has struggled to provide value to holders. Without a fee switch, UNI remains limited in utility, leaving the DEX economy directionless and vulnerable to competition.
— Aerodrome (@AerodromeFi) August 21, 2024
UniSwap Foundation In A Situation With $UNI
The Uniswap Foundation, which has sold around $60 million worth of UNI to fund operations and support its grants program, has yet to activate this crucial fee switch.
As a result, UNI’s value is stuck in a zero-sum situation—if fees were to increase for UNI holders, it would likely reduce returns for LPs, further complicating the token’s role in the broader ecosystem.
UNI Token:
The Uniswap Foundation has sold around $60M UNI to fund operations and supports the grants program. However, without activating the fee switch, UNI's value remains limited, creating a zero-sum scenario where increasing fees for UNI holders means less for LPs. pic.twitter.com/djm6zbr3Ry
— Aerodrome (@AerodromeFi) August 21, 2024
As UNI holders and potential investors watch these developments, the future of the token hinges on whether Uniswap will make strategic changes to enhance its utility and secure its place in the competitive DEX market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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