Ondo Finance, a U.S.-based issuer of tokenized securities, is suspected of selling 20 million ONDO tokens, resulting in a notable 13% decline in the currency’s price within a short timeframe.
The situation raised concerns with an X crypto enthusiast doing further investigation into the token sale.
Large ONDO Token Transfers Trigger Price Drop
According to X user AI, an address with the identifier 0x415…72298 received 50 million ONDO tokens, equivalent to approximately $10.97 million, from the project’s multi-signature address three days ago. Subsequently, 10 million tokens were transferred to Gate and Kucoin a few hours ago.
As of the latest information, the address still retains a substantial holding of 118 million ONDO tokens, valued at approximately $31.77 million.
The significant drop in Ondo Finance’s token price this morning, sliding from $0.3062 to $0.254, may be attributed to the suspected sale, according to AI. Meanwhile, Ondo’s trading volume has surged to $211,932,704 in the last 24 hours, a 50.10% increase from the previous day, suggesting heightened market activity.
Notably, the global cryptocurrency market cap is also down at $1.6 trillion today, reflecting a 1.3% change in the last 24 hours. This broader crypto market trend may also contribute to the ONDO plunge.
Ondo Finance’s Recent Expansion
Today, Ondo Finance officially announced the opening of its first office in the Asia Pacific (APAC) region. The project, asserting a substantial market share of close to 40% in the global tokenized securities market, currently offers three tokenized products: OUSG, OMMF, and USDY. They expose various U.S.-based asset classes, including U.S. Treasuries and money market funds.
Ondo Finance also recently issued new tokens, unlocking 14.3% of its native ONDO. Notably, the platform’s tokenized products have a collective valuation of over $200 million, with OUSG being the most valuable, according to rwa.xyz.
Nathan Allman, the founder and CEO of Ondo Finance, expressed enthusiasm about the move, citing the active and rapidly growing crypto community in the APAC region. He emphasized that there is a notable appreciation for the high-quality exposure to U.S. assets that Ondo’s tokens offer.
In November, Ondo collaborated with the Mantle Network to launch USDY, a tokenized note backed by U.S. Treasuries and bank deposits. Furthermore, as detailed in a post on X, the company expanded its presence by launching USDY on the Solana blockchain in December.