A coalition of DSD whales has bought out the project’s largest bear entity allegedly responsible for consistently keeping the token price below the $ 1 peg.
Post the bear in question ‘Escobar.eth’ on the DSD discord group disclosed“I officially closed an OTC deal and sold 5.5 million DSD to a whale group. I will not hinder further expansion efforts. “
One of the deal’s facilitators and a multisig holder of the project, passing by @_wilske on Twitter, told Cointelegraph:
“Escobar has been holding the price down for a while, can’t speak of his intentions, but I assume it was to expire coupons. He’s sold many millions (if I had to guess about 10 million) to suppress in a while [the DSD price action]. “
According to @_wilske, Escobar even averted the latest bullish advance for DSD a few days earlier, selling 5 million tokens to stop an attempt to move beyond the $ 1 threshold.
Indeed, DSD has failed to keep a time-weighted average price, or TWAP, above $ 1 since era 408 – almost a week ago. Achieving a TWAP above $ 1 is required to initiate an expansion phase that includes rewards for coupon holders, bond token owners, and liquidity providers.
The DSD multisig holder said the move to buy out Escobar was to establish a more capital-efficient means to restore the link. He also told Cointelegraph that coupon whales were responsible for providing the funds to carry out the deal.
With nearly $ 83 million in coupons at stake, it might not be surprising to see such a drastic move. The first wave of massive expirations will begin in era 721 – which is 32 eras or 16 hours away from the time of writing.
Of the $ 83 million, about $ 78 million will pass in two massive waves between ages 721 to 749 and 756 to 767. At the current premium of 45.56%, that’s more than 42 million DSD.
As previously reported by Cointelegraph, DSD fell to $ 0.27 during one of his previous contraction events in late 2020. DSD belongs to the class of algorithmic stablecoin projects that have gained some traction in the crypto space in recent months.