2025-12-25 00:24:51

Half a year ago, institutions still loudly proclaimed "HODL," but now they are quietly changing their tune. A publicly listed company holding nearly 100,000 ETH recently stated in regulatory filings: "Possibly all assets will be liquidated." This is not sensationalism; it is a real event.

A regulatory announcement just broke early this morning, causing a stir in the crypto community. The company explicitly admitted in official documents that they sold approximately 24,000 ETH at an average price of around $3,068. Even more bluntly, they stated: "Selling ETH is to 'maintain company operations'." In other words, their impressive HODL strategy is forced to bow to practical realities.

Here's the interesting part. The document also revealed a detail: the funds from selling ETH are flowing into a decentralized finance protocol called Decentralized USD (USDD). This is not just a simple exit; it’s a reallocation of capital — institutions are shifting from high-volatility asset markets to a new financial system that emphasizes stability and liquidity. This shift alone indicates many underlying issues.

Over the past two years, institutions led by major companies have been aggressively buying Bitcoin, telling a compelling story: embracing blockchain, optimizing asset allocation, and enjoying appreciation. But now? Reality has given everyone a slap in the face. When survival becomes pressing, any lofty narrative can be the first to be discarded.

This actually reflects a key change: the mindset of institutional investors is shifting. They are beginning to realize that, compared to betting on the appreciation of crypto assets, the transparency, predictability, and liquidity of stablecoins and DeFi protocols are more practical in the current environment. From the myth of HODLing to the stablecoin ecosystem, this is not just a change in capital flow but a turning point in market sentiment.

An era may truly be coming to an end. And a new story is being written by those who understand how to flexibly allocate assets.

ETH-0.14%

USDD0.03%

BTC0.36%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
6
Repost
Share

Comment

0/400

LiquidatedAgain

· 10h ago

Once again, we've been cut, and this round of institutional moves is absolutely brilliant... A painful lesson in blood loss. Really, I told you, when I went all in, I thought the same as these institutions. Now, with the liquidation price right in front of me, they just turn around and run to USDD. Risk control points, ah, it's worth a fortune to know early. The average price is 3068, and I was still bottom fishing at 2800... On the day of liquidation, I should have seen through this. From holding coins to the stablecoin ecosystem, honestly, it's just being timid. Under the pressure to survive, everyone has to bow. When the lending rate rises, you should run. My blood and tears are lessons for everyone. Institutions are replenishing their stablecoin holdings, while retail investors are still dreaming of bottom fishing... The gap is really not just a little.

View OriginalReply0

TokenVelocityTrauma

· 10h ago

This move is really impressive. Is this all the "long-term holding" from the institutions? Selling so quickly and switching to USDD, ultimately they just can't survive anymore.

View OriginalReply0

SatoshiChallenger

· 10h ago

Ironically, a few months ago, there were still voices praising "institutional long-term optimism." Now, after a clear-out, there are 24,000 coins, and the data speaks for itself. Here we go again, "maintaining company operations" is just a code word, meaning cash flow is tight and assets are being sold off. It has nothing to do with any strategic shift. Interesting, the money flowing into USDD... I want to see how this "decentralized stablecoin" ends up in a few months. We've been taught too many lessons from history. Institutions always change their tune like this. When the numbers look good on paper, they tell stories; when it comes to life and death, they treat all assets as second-hand goods. I'm not criticizing, but anyone who experienced the 2018 wave knows that this kind of "shifting from holding coins to stablecoins" can only last until the next bubble cycle.

View OriginalReply0

GasFeeWhisperer

· 10h ago

Big institutions' moves this time are really impressive. The so-called "forever hold" turned into quick liquidation. When will they learn this kind of trade? Institutions are cutting losses to buy USDD? How desperate must they be to make such a decision? Half a year of calling for long-term holding and then half a year of selling off. I wonder who the hell would believe what institutions say. Account fully liquidated to switch to stablecoins. Honestly, they’re just chicken. No money left, I guess. This is the reality. The grand narratives in papers collapse when faced with real cash. Brothers are all bottom-fishing USDD. Should I follow suit? Oh wow, is this all the institutional advantage is? I thought they could see something more.

View OriginalReply0

DefiPlaybook

· 10h ago

It is worth noting that the more critical data is the fund flow behind it—24,000 ETH valued at $3,068 each, approximately $73.64 million flowing into USDD. The increase in TVL needs to be continuously monitored. Wait, shifting from highly volatile assets to stablecoin ecosystems essentially indicates an increase in risk aversion. Looking at three dimensions: first, liquidity demand; second, compliance pressure; third, changes in APY yield models. The narrative shift among institutions often leads market sentiment by 3-6 months. What about the promised long-term holding? According to on-chain data, the proportion of large holders HODLing has decreased by 8.3% in the past week. This signal is very clear. Talking about faith, the account is the most honest. Institutions always sell off faster than retail investors. Based on historical patterns, such reallocation of funds usually indicates a systemic contraction in market risk appetite. Attention should be paid to subsequent lock-up period restrictions and contract triggers.

View OriginalReply0

GateUser-40edb63b