Crypto trading firm and liquidity provider GSR Markets has deposited a significant portion of NeiroOnEthereum’s (NEIRO) total supply back into the Bybit crypto exchange after previously withdrawing them.
According to a post on X by market analytics platform, Spotonchain, GSR Markets transferred approximately 74.13 million $NEIRO tokens, which account for 7.41% of the token’s total supply, back to the exchange.
At the time of this writing, there’s no clear reason why GSR Markets is unloading this token back to the crypto exchange platform.
GSR Markets deposited 7.41% of @NeiroOnEthereum’s total supply back to Bybit in the last 14 hours!
Notably, GSR Markets withdrew 74.13M $NEIRO from #Bybit at an average price of $0.084 (estimated cost: $6.2M) between Oct 8 and 21, 2024.
However, this action is likely intended… https://t.co/pNzp5hsqzk pic.twitter.com/BtWBfkHTgR
— Spot On Chain (@spotonchain) October 26, 2024
Background of the Withdrawals
Notably, GSR Markets removed 74.13 million NEIRO tokens from Bybit at an estimated average price of $0.084 between Oct. 8 and 21. This withdrawal resulted in a cost of about $6.2 million.
At first, these withdrawals raised the possibility of a plan to promote NEIRO outside the exchange’s influence for broader adoption. However, the decision to re-deposit a comparable sum into Bybit suggests that the trading firm may have changed its approach to promoting the digital asset.
However, the re-deposit could also be a plan to improve trading liquidity rather than start a sale, as is often the case when such huge deposits are made on an exchange.
A Focus on Liquidity
Based on the purchase amount, GSR Markets would suffer a large loss if it were to sell the deposited tokens at the current price of $0.075. The estimated selling price is $5.53 million, which represents a loss of $669,000, or 10.8%, within 18 days.
Given that more liquidity typically results in a more stable price and more seamless trading experiences for investors, GSR Markets’ strategy could be beneficial to Bybit’s trading ecosystem.
Hence, the digital asset holders could anticipate the token’s price rally as a result of this event. Recall that NEIRO’s price surged by almost 1,000% last month, with some traders profiting millions of dollars from it.
NEIRO currently trades at $0.0647 per current Coingecko data.
NEIRO 24-hour Price Chart. | Source: Coingecko
