Uniswap Foundation Faces Scrutiny Over Massive UNI Token Sales

The Uniswap Foundation, the group responsible for maintaining the Uniswap (UNI) protocol and ecosystem, has recently been scrutinized due to its massive sale of the ecosystem’s native tokens.

In a recent post on the X (previously Twitter), the renowned on-chain resource Lookonchain revealed that the Uniswap Foundation transferred 6.8 million UNI tokens valued at $29.16 million to a new wallet.

Some UNI coins were transferred to FalconX, a crypto brokerage and digital asset trading platform.

In addition, Lookonchain reported that the Uniswap Foundation sold three million UNI tokens worth $13 million via the Kraken exchange deposit address of automated market maker Wintermute.

According to the market tracker, the Uniswap team orchestrated the sale after yesterday’s significant gains in UNI tokens.

In a similar thread, the well-known market risk monitor PeckShieldAlert reported that the Uniswap Foundation had transferred nearly ten million UNI tokens from its custody wallet to four different addresses over the past three days.

The foundation has sold approximately $43.3 million worth of UNI tokens.

In the meantime, Blockchain Explorer indicated that the Uniswap Foundation received 10,685,984 UNI from a wallet labeled “Uniswap V2: UNI Timeblock” before its significant outflow of UNI tokens. The influx occurred on October 20.

Moreover, according to Etherscan, the Uniswap Foundation’s last significant transfer of UNI tokens occurred nearly a year ago.

In addition, it revealed that the foundation’s wallet has barely transferred a substantial amount of tokens over the past two years. This recent increase in transfer volume has raised questions about the motivation behind UNI token sales.

The Uniswap Foundation has not commented on the X (formerly Twitter) regarding the recent outflows of UNI coins as of the time of this report.