A coalition of DSD whales has bought out the biggest bear entity on the project allegedly responsible for consistently keeping the token price below the $1 peg.
Posting on the DSD discord group, the bear in question “Escobar.eth” revealed, “I’ve executed an OTC deal officially and sold out 5.5m DSD to a whale group. I will not be impeding further expansion efforts.”
One of the facilitators of the deal and a multisig holder on the project, who goes by @_wilske on Twitter, told Cointelegraph:
“Escobar has been suppressing price for a while now, can’t speak for his intentions but I assume it was to expire coupons. He sold many millions (if I had to guess around 10 million) over some time to suppress [the DSD price action].”
According to @_wilske, Escobar even prevented the last bullish advance for DSD a few days prior, selling 5 million tokens to halt an attempt at moving beyond the $1 threshold.
Indeed, DSD has failed to maintain a time-weighted average price, or TWAP, above $1 since epoch 408 — almost a week ago. Achieving a TWAP greater than $1 is necessary to trigger an expansion phase that holds rewards for coupon holders, bonded token owners, and liquidity providers.
The DSD multisig holder said the action to buy-out Escobar was to establish a more capital efficient means of restoring the peg. He also told Cointelegraph that coupon whales were responsible for providing the funds to execute the deal.
With almost $83 million in coupons on the line, it is perhaps unsurprising to see such a drastic step. The first wave of massive expirations is set to begin in epoch 721 — which is 32 epochs or 64 hours away as of the time of writing.
Of the $83 million, about $78 million are set to expire in two massive waves between epochs 721 to 749 and 756 to 767. At the current 45.56% premium, that amounts to over 42 million DSD.
As previously reported by Cointelegraph, DSD fell to $0.27 during one of its earlier contraction events back in late 2020. DSD is among the class of algorithmic stablecoin projects that have gained some traction in the crypto space in the last few months.
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