In particular, altcoins listed as securities by the SEC have fallen sharply over the past hour.
MATIC fell 19%, SOL 17%, ADA 16%, FIL 22% and SAND 19%.
Some tokens not listed as securities such as OP, SUI, BSV, EOS also fell. However, BTC and ETH saw a slight decrease compared to them. The amount of liquidation exceeded US$ 200 million in 1 hour.
The Reason Behind The Big Drop Could Be The Big Fund Selling Its Cryptos
However, one of the possible reasons for the decline emerged. Scimitar Capital was said to be the fund that liquidated $2 billion in altcoins late Friday night in the massive crypto sale.
This was confirmed in the statement made by the fund. In its official statement, the fund said:
“Our fund has made the strategic decision to liquidate our crypto assets and return capital to our valuable LPs. We believe this move will provide more stability and opportunity.”
Scimitar Capital is a private investment banking firm that provides capital and advisory for the acquisitions, recapitalizations, expansions and management buyouts of US-based middle market companies.
*Not investment advice.