Key Takeaways:
A multi-signature wallet has initiated a $5 million purchase of the SKY token using the Time-Weighted Average Price (TWAP) feature on the CoW Swap protocol, signaling a significant accumulation by a large holder.
"The use of a TWAP order for a $5 million purchase is characteristic of a sophisticated entity aiming to acquire a large position with minimal price impact," said a DeFi analyst. On-chain data from sources like Arkham Intelligence confirm the wallet's systematic buying activity.
The purchase order involves swapping 5 million USDC for the SKY token over an extended period. CoW Swap's TWAP function automates this process by breaking the large order into smaller, randomized trades to reduce slippage and avoid alerting front-running bots on the Ethereum blockchain.
This methodical accumulation is a bullish signal for the SKY token. A large, patient buyer with a long-term strategy can absorb available liquidity, putting sustained upward pressure on the price and potentially attracting speculative traders looking to follow the "smart money."
The choice of a TWAP order over a simple market buy indicates the buyer is not attempting a short-term price pump. Instead, the strategy points to a strong belief in the token's long-term value and a desire to build a substantial position without disrupting the market. This action could significantly reduce the freely traded supply of SKY, potentially leading to increased price volatility if demand suddenly rises.
This article is for informational purposes only and does not constitute investment advice.
