On-chain analyst Ye Jin said today that a wallet suspected of belonging to Trend Research borrowed 27,000 ETH five hours ago and shorted the position. The amount was worth about $57.11 million at the time. The wallet borrowed ETH from the DeFi protocol Aave and transferred it to Binance immediately. Short selling involves borrowing assets to sell them in anticipation of a price decline, then buying them back later to lock in profits.
Ye Jin presented evidence suggesting the wallet may be Trend Research’s own address. The address withdrew about $303 million in USDC from Binance on the 11th of last month, timing that coincides with Trend Research transferring all ETH to Binance in February. A week earlier, the wallet sent about $150 million in USDC to Binance, with some transactions using known Binance deposit addresses associated with Trend Research. The wallet currently holds $100 million USDC as collateral in Aave and has borrowed 27,000 ETH, which have been transferred to Binance.
This activity underscores linkage between DeFi borrowing and centralized exchanges, contributing to ownership speculation around Trend Research. If confirmed, it would illustrate how substantial ETH borrowings can be moved to exchanges swiftly, influencing liquidity and market sentiment.
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