Multicoin Capital's AAVE Transactions Spark Speculation

Blockchain sleuth EmberCN posted on X that on a recent morning, Multicoin Capital transferred 150,000 AAVE tokens, valued at $14.91 million, to exchanges via Galaxy Digital and BitGo. Following this move, AAVE's price smoothly declined by 7%, from $99 to $92. Subsequently, after AAVE hit $92, Galaxy Digital withdrew 98,000 AAVE tokens, worth $9.08 million, from multiple exchanges and returned them to Multicoin Capital's address. This action led to a slight rebound in AAVE's price to $93. The transactions have sparked speculation about whether Multicoin Capital engaged in a strategy of selling high and buying low, or if asset management platforms like Galaxy Digital borrowed the tokens from Multicoin Capital, sold them, and repurchased them at a lower price to return.