Scimitar Capital Confirms Liquidation Of All Altcoins, Suspects $2B Caused Market Dump

Key points:

• Scimitar Capital confirmed the fund had liquidated all of its cryptocurrencies to return the LPs.
• The exact amount of the liquidation is yet to be determined but is suspected to be $2 billion.
• The entire market was flooded with sharp drops, especially for altcoins.

The decision to liquidate crypto holdings by Scimitar Capital, a crypto-exclusive trading firm, is rumored to be the reason for the widespread altcoin price drop on Saturday.

“Our fund has made the strategic decision to liquidate our crypto holdings and return the capital to our esteemed LPs. We believe this move will provide enhanced stability and opportunities”

While the Bitcoin price is down around 3% in the past 24 hours, the global crypto market value is now $1.04 trillion, down 5.74% in the last 24 hours. Among the top cryptocurrencies, Cardano (ADA) and Solana (SOL) lost the most value, with over 24% in the last 24h for each token.

The situation is that the altcoin drop will continue to linger. For ADA, SOL, and MATIC may be at least 3 more weeks due to the influence of the Robinhood crypto exchange’s delist announcement. For the rest of altcoins in the market, the SEC is a big threat as it is unknown which tokens will be the next target.

In a new development, Scimitar Capital, a cryptocurrency trading platform, said it strategically decided to liquidate our crypto holdings. The crypto community believes this is most likely the reason behind the sudden and widespread drop in cryptocurrency prices. The company said in a statement.

Meanwhile, a Twitter account named Thiccy said Scimitar liquidated $2 billion worth of altcoins on Friday night, leading to a market-wide sell-off. However, the crypto platform’s credentials are yet to be ascertained amid the widespread impact.

“The fund liquidated $2 billion in altcoins Friday night in the widely rumored crypto sell-off of Scimitar Capital”

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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