OHM In Blood, How This OlympusDAO Whale Sank Its Price by 44%

OlympusDAO (ethernet-based OlympusDAO) and OHM, its native token, exploded when the protocol welcomed new users looking to benefit from its high annual percentage rate yield (APY). OHM’s peak price was $330. However, it seems that the asset has been on a decline since last October.

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OHM tends to be negative. Source: Coingecko

Wu Blockchain claims that a OlympusDAO whale is possible. triggered a cascade of liquidations on the protocol during today’s trading session. This led to a 44% crash in OHM’s price within an hour. OHM holders were offered APY at 190,000%.

As reported by NewsBTC, OlympusDAO is an algorithmic currency protocol that was classified in 2021 as high risk, but with the potential to display a “countercyclical” price behavior by research firm Delphi Digital. In other words, OHM’s price could move against the general sentiment in the market.

OHM has not been able to reach its full potential. Or at the very least, it seems that OHM failed to recognize the market’s trend to the downside. OHM’s price action has been driven by early investors taking profits on their gains.

User Freddie Raynolds identified the Ethereum transaction used by a “savage” OlympusDAO user to dump $11 million in OHM. Raynolds tweeted that the transaction resulted in a slippage of 25% and liquidations totalling $5 million for this asset.

Twelve hours ago, an OHM holder recorded the transaction on Ethereum Blockchain. He used SushiSwap decentralizaed trading platform SushiSwap in order to exchange 82.526 OHM tokens with $11 million DAI. The transaction was tracked down to a pseudonym holder called “el sk”, @shotta_sk, on social network Twitter.

The OHM whale apparently sold part of his funds to “survive” the current crypto market conditions. He claimed that he had the following tweet:

To ensure that my family is able to weather any economic storm, I have de-registered some OHM. Rest of the risk will continue with me indefinitely.

Perfect Time To Get Into OlympusDAO?

OlympusDAO witnessed an increase of its users, its Treasury assets and Total Value Locked (TVL), during 2021. Thus, some users claimed that today’s OHM crash should be leverage as a buying opportunity.

The protocol and its team behind have set out to create “the reserve currency for DeFi” with their 3,3 mechanism and the introduction of new features, including an incubator and a pro version of the platform. However, there has been a lot criticism of the protocol.

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Selini Capital Jordi Alexander’s CIO published two articles on OlympusDAO (OHM), and the 3,3 mechanism. Therein, Alexander refers to the protocol as a “ponzi”. Addressing the possibility that his article affected OHM’s performance, he said:

Only selling affects price, there’s no shorting so only whale holders can sell lots. You can question them about their feelings, but they are likely looking to exit. The price has been falling for several weeks.

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