On-Chain Analysis of $HFT

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    The Datafi
    Published on
    · 5 min read
  • In cryptocurrency, it is important to analyze on-chain data to make informed investment decisions. In this article below, we will provide a comprehensive overview of the current state of the Hashflow ($HFT), using on-chain metrics and analysis.

    - Market makers are holding a significant amount of $HFT, which has yet to be distributed.

    - On-chain data shows that Jump Trading may be accumulating more $HFT by buying when the price dips.

    $HFT is currently being held by market makers, two of the largest being Jump Trading and Wintermute. The amount held by these two market makers as of November 7th and 18th are:

    • Jump Trading: 25 million $HFT, 13 million $HFT
    • Wintermute: 15 million $HFT, 7 million $HFT

    → It is worth noting that the market makers are still holding a significant amount of $HFT, which has yet to be distributed. This is because one of the key functions of market makers is to help projects find liquidity and distribute tokens efficiently.

    Accumulation of $HFT

    On-chain data shows that Jump Trading's wallet transferred 500,000 $HFT to the Houbi exchange on 07/11 and withdrew ~2 million $HFT from Houbi on 11/11.

    It is not clear if these transfers are from other wallets or exchanges. However, these actions may be indications of accumulating more $HFT from Jump Trading when the amount they hold is not too large and buying more when the price dips is reasonable.

    Currently, there are no signs of $HFT being deposited back to the exchanges.

    $HFT OTC price

    The on-chain analysis also interestingly reveals that 11 wallets in the top 20 wallet holders received the same amount of $HFT from Coinbase (total of ~7.3 million $HFT) at the same time that Jump Trading sent the equivalent amount to Coinbase. The Datafi has determined that there are two possible scenarios for this event:

    1. These 11 wallets belong to Jump Trading, which has split its holdings into smaller wallets for price manipulation.

    2. These 11 wallets belong to different holders and Jump Trading and Coinbase may have reached an agreement to support the price.

    In conclusion, it is difficult to determine the exact OTC price of $HFT, but the actions of the largest market maker and the occurrence of the 11 wallets receiving $HFT from Coinbase are worth paying attention to.

    Price and Related Factors

    1. Return on Investment (ROI)

    Jump Trading and Wintermute's Series A investment in $HFT has a current ROI of only ~1.4x, which is relatively low compared to their previous projects: $BICO, which has an ROI from its Seed round of 40x, and from its IEO round of 20x, and $UMEE, which had an ROI of 3-4x in its early days before a price drop.

    2. Market Cap (MC)

    The current MC of $HFT is stagnant at $100 million, which is a critical level as a project with a market cap greater than $100 million is significantly different from a project with a market cap under $100 million. However, given the negative trend in the market, it is not possible to predict what will happen to $HFT.

    Token Balance

    The $HFT cryptocurrency has a total circulating supply of 175 million tokens. Out of these, 19.3 million tokens (11%) are in the form of an airdrop, 7 million tokens (4%) are in Binance's LaunchPool, and 15% are related to market makers (MM), including 20 million tokens held by 2 MM wallets (11%) and 7.3 million tokens held by 11 wallets related to MM (4%). The remaining 121.4 million tokens (70%) are spread out among various other entities.

    It is important to note that the holding ratio of $HFT by the 2 MM wallets is not significant, which means that market makers do not hold a large proportion of the total supply. This fact presents a relatively high degree of risk for MM if they attempt to push up the price of $HFT at this time, particularly in light of the negative market conditions following the FTX incident.

    Selling Pressure

    The selling pressure from airdrop wallets, which are worth $11 million and account for only 1.9% of the total supply, is minimal. These wallets are gradually returning the tokens they hold, with 25% having been returned in the last 10 days. Hence, the selling pressure from the airdrop is not expected to be significant.

    On the other hand, Alameda Research has invested in Hashflow, but no $HFT tokens will be provided to the company until November 20th, 2023. As a result, there will not be any selling pressure from Alameda Research in the near future in the event of liquidation. However, the community has recently experienced selling pressure following the knowledge of Alameda's involvement.

    In conclusion, this analysis of the token balance and selling pressure of $HFT provides an overview of the current state of the market for this cryptocurrency. We hope that this information will be helpful for readers in understanding the on-chain metrics of $HFT.