On the 9th of February 2023, The Twitter account of Lookonchain posted a thread saying that USDC was used to engineer the recent crypto and Bitcoin boom.
1/ A mysterious fund started pouring money into the crypto market ahead of this year's small #BullMarket.
— Lookonchain (@lookonchain) February 9, 2023
In the thread, Lookonchain, a web3 data analysis tool provider, attributed the recent boom in the crypto and Bitcoin market to USDC while placing USDT on the sidelines.
An image was also attached to the thread where it was explained that an unknown institution or whale funded the crypto market ahead of the year’s bull market, after which the fund proceeded to withdraw 31.34 million USDC from Circle on Dec 7, 2022, and garnered over 10 billion USDC as of today.
Lookonchain claimed that this mysterious fund subsequently exchanged USDC for $USDT via 5 addresses and deposited to exchanges like Coinbase, Kraken and Binance from January 9th to January 25th 2023, promoting the rise of cryptocurrencies such as ETH, which we have witnessed in the past month.
A USDC withdrawal chart was also attached, demonstrating how the said institution started withdrawing $USDC from Circle and transferring to exchanges which created a ripple effect on the price and rise of ETH.
After hitting a major setback in the crypto market early last year, with FTX’s implosion and the meltdown of many other investment institutions. Analysts are still clamouring to explain the sudden trend reversal. Some market experts are of the opinion that the current trend reversal could point to an echo bubble, and there is some evidence to back this notion.
Web3 investor and CEO at Vylo, Tyler Reynolds, believes that the recent happenings, which he referred to as an “echo boom”, is an engineered rally, resembling what FTX did on August 21st and June 22nd 2022, and the SEC’s decision to ban staking is proof that backs up said claim.
There seem to be mixed feelings in the crypto community as some question the similarities between FTX happening and the looming echo boom, and others believe that the dangers in the crypto market seem to be underplayed. At the same time, some are under the impression that these might be conspiracies that will pass.
Yet the same question is on everybody’s lips, who is the engineer of this so-called crypto boom that is desperately trying to stay ahead of the market? and how would this development affect future prices, as it appears that the current rise in cryptocurrency prices has something to do with this mysterious whale.