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Whales are stockpiling this token ahead of a crucial event
Frax Finance is scheduled to undergo its halving on December 20. This involves a 50% reduction in the emissions of FXS on that date, and it seems that a large whale has been strategically positioning itself in anticipation of this event
Two institutional investors have made investments in FXS
One address, in particular, linked to the crypto trading firm Amber Group, has acquired a substantial position in FXS since November 16, accumulating a total of 712,659.499 FXS, valued at $6,094,471 at the time of writing. This address made its most recent purchases on December 5 and December 6, adding 200,000 FXS to its portfolio.
Another large wallet to monitor for FXS holders is the custody wallet of DragonFly Capital, which currently contains 1.1 million FXS, valued at $9.43 million. DragonFly Capital transferred their FXS to this BitGo wallet four days ago, although the reasoning behind it remains unclear.
With large institutions like DragonFly Capital and Amber Group heavily invested in FXS, it appears that, although the performance of FXS has not been as phenomenal as some other tokens, smart money anticipates a potential change with the halving acting as a catalyst.
Cryptonary’s take
Based on historical data, the FXS halving has consistently acted as a catalyst for the price of FXS to rise. It appears that this smart money whale is betting on this phenomenon to persist.
If you are considering taking this trade with him, closely monitoring BTC will be crucial, as it will dictate the trend leading into December 20. However, based on historical data, it does seem like FXS could start picking up steam after the halving
Beyond the halving, there are additional catalysts for FXS heading into 2024, notably its plans to launch its own Layer 2 FraxChain. We had earlier highlighted FXS as a long-term investment earlier in the year.
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