The crypto industry is facing another "darkest hour." Over the past day, the cryptocurrency market plummeted, with Bitcoin (BTC) briefly falling below $49,000—a nearly 20% drop in a single day.
While macroeconomic factors like recession fears and Middle East tensions contributed to the decline, the potential collapse of Jump Trading is also suspected to be a key driver. Earlier today, BitMEX co-founder Arthur Hayes hinted that a "big player" was liquidating its crypto holdings, with many speculating it refers to Jump.
As one of the industry's leading market makers and most active investors, Jump's potential downfall could send shockwaves through the market—particularly for projects it has directly invested in or supported.
Below, we analyze the tokens most closely tied to Jump based on publicly available data.
Ethereum (ETH)
ETH has long been a core holding for Jump. During the recent crash, Jump's aggressive selling contributed significantly to ETH's downward pressure.
Lookonchain data reveals that since July 24, Jump has sold 83,000 wstETH (~$377M), leaving 37,604 wstETH ($104M) remaining. These ~120,000 wstETH ($481M) originated from funds recovered after Jump successfully countered the Wormhole attacker in 2023.
👉 How market makers influence crypto volatility
Solana (SOL)
Solana—Ethereum's largest competitor—is another major Jump-backed project. Beyond holding and market-making SOL, Jump has invested in or incubated multiple Solana ecosystem projects (e.g., Wormhole, Serum, Sanctum) and even contributed to Solana's infrastructure development.
Notably, Jump Crypto developed Firedancer, Solana's most significant infrastructure upgrade in recent years. Jump's collapse could delay Firedancer's final release.
Wormhole (W)
Wormhole, Solana's dominant cross-chain protocol, was originally created by Jump Crypto before spinning off as an independent entity.
In February 2022, Wormhole suffered a historic 120K ETH hack (~$325M at the time). Jump Crypto stepped in to replenish the lost funds upfront—later recovered in February 2023 as the aforementioned wstETH holdings.
Monad (No Token Yet)
Monad, a hot parallel EVM project, was founded by ex-Jump researchers led by Keone Hon (Jump's former Head of Research).
When Wormhole airdropped its W token, it allocated a significant portion to Monad's community—seen as evidence of cross-project collaboration within Jump's ecosystem.
👉 Understanding crypto market makers
Jump-Backed Tokens: APT, SUI, INJ, ALT...
Jump has actively invested in key crypto projects, including:
- Aptos (APT): Led $150M round in 2022 with FTX Ventures (now defunct)
- Sui (SUI): Co-led $300M Series B with a16z in 2022
- Injective (INJ): Led $40M funding in 2022
- AltLayer (ALT): Co-led $7.2M seed round in 2022
FAQ
Q: Why is Jump's potential collapse significant?
A: As a top-tier market maker and investor, Jump's exit could reduce liquidity and confidence across multiple major tokens.
Q: Which token would be most affected if Jump fails?
A: ETH and SOL face immediate selling pressure, while Wormhole (W) and Monad have direct operational ties.
Q: How can investors monitor Jump's holdings?
Track wallets identified by Lookonchain and review Jump's investment history via Crypto Fundraising databases.
Q: Are there positive scenarios where Jump survives?
A: Yes—if macroeconomic conditions improve or Jump secures emergency funding, markets could stabilize.