A mysterious investor is scooping up an Ethereum-based (ETH) altcoin that has more than doubled up in price so far this year.
According to new data from blockchain-tracking service Lookonchain, an unnamed institution spent $10 million worth of USD Coin (USDC) to purchase 3.4 million Synthetix (SNX), a decentralized asset issuance project, during the last two days.
“An institution spent 10 million USDC to buy 3.4 million SNX from [the] Synthetix Treasury in the last two days, the buying price is ~$2.93. The institution holds 44.5 million CFX ($15 million) and 7.3 million YGG ($2.07 million), and is an investor of Yield Guild.”
Synthetix is a derivatives protocol that allows users to hold and trade crypto, stocks and precious metals without actually owning the specific asset directly.
Says crypto exchange Gemini,
“[Synthetic assets] use decentralized oracles, which are smart contract-based price discovery protocols, to track the prices of the assets represented, allowing you to hold and exchange [them] as if you actually own the underlying assets.
In this manner, Synths provide exposure to assets that are normally inaccessible to the average crypto investor – gold and silver, for example – and lets you trade them quickly and efficiently.”
SNX has seen a significant price increase in 2023. The digital asset opened up the year trading for $1.42 but ultimately sparked a rally up $3.22, a 126% run. SNX has since retraced and is trading for $2.82 at time of writing, a 10% decrease during the last 24 hours.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Digital Store/Andy Chipus