Union Square Ventures transfers Uniswap Tokens worth $8.45m to Coinbase Prime

As an analyst with over two decades of experience in the crypto market, I find this recent series of transactions by Union Square Ventures (USV) quite intriguing. The consistent transfer of large amounts of UNI tokens to Coinbase Prime suggests a strategic move rather than a casual one.

Union Square Ventures recently moved over 578,000 UNI tokens valued at around $8.45 million to Coinbase Prime within the last nine hours.

Recently, it has been observed that Uniswap (UNI) tokens have been consistently moved towards Coinbase Prime, as part of a larger pattern. This shift was reported by Ember Scan earlier this month. Specifically, on December 19th, the venture capital firm UTIMCO-backed by USV transferred an extra 1.156 million UNI tokens to Coinbase Prime, which is equivalent to approximately $17.34 million, given an average price of $15.07 per token according to historical data.

6 hours ago, USV continued transferring 57,800 units of $UNI (worth approximately $8.45 million) to Coinbase Prime.

— 余烬 (@EmberCN) December 25, 2024

Starting from December 6, 2024, USV commenced shifting their UNI tokens (received from a 2020 investment) to Coinbase Prime. Over the past three weeks, they have transferred approximately 3.511 million UNI tokens, valued at about $54.56 million in total. The average price of these transferred tokens was roughly $15.53 each.

4 hours ago, USV continued to transfer 115,600 units of $UNI ($17.34M) to Coinbase Prime.

Starting from December 6th, USV has been transferring UNI it acquired through investment in 2020 to Coinbase Prime. Over a two-week period, they have accumulatively transferred 293,300 units of UNI ($46.11M), with an average price of $15.72.

Currently, USV’s address still holds 1,094,300 units of UNI ($160.75M)…

— 余烬 (@EmberCN) December 19, 2024

Despite these significant transactions, the USV-linked address continues to hold a substantial amount of UNI tokens. As of now, this address remains in control of approximately 10.364 million UNI, which is equivalent to around $149.66 million at the current market price of $14.19 per token.

2020 saw a Series A funding round that amassed $11 million for Uniswap. Andreessen Horowitz spearheaded this investment, with significant contributions also coming from notable firms like Version One, Parafi Capital, Variant, SV Angel, and A. Capital. Additionally, Union Square Ventures joined the fray. The collected funds were earmarked to support the expansion and enhancement of Uniswap’s decentralized trading solutions.

According to crypto.news, Uniswap attracted regulatory scrutiny when the Commodity Futures Trading Commission filed an order against Uniswap Labs on September 4, 2024, for facilitating illicit trading of digital asset derivatives. As part of the settlement, Uniswap Labs agreed to pay a fine of $175,000 and cease violating the Commodity Exchange Act.

It seems USV is transferring funds into different Coinbase accounts, possibly for liquidation, safekeeping, or adjusting their UNI holdings. The consistent movement of funds towards Coinbase Prime, a platform tailored for institutional investors, suggests a strategic method for handling their UNI investments.

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2024-12-25 08:24