Uniswap Whale Sells $75M in UNI as "UNIfication" Soars 44%

Uniswap Whale Sells $75M in UNI as "UNIfication" Soars 44% – Insider Exit or Coincidence?

Uniswap's recent proposal, known as "UNIfication," resulted in a significant price increase of 44% for the $UNI token. However, this surge was accompanied by a substantial sale of $75 million in UNI by a whale investor, raising concerns about potential insider trading. The proposal aims to establish protocol fees for the first time in Uniswap's history, while analysis suggests that significant insider selling coincided with the price spike.

Key Takeaways

The “UNIfication” proposal activates protocol fees for the first time in Uniswap's five years, leading to a remarkable 44% price rise.
A whale from 2020, associated with early investor contracts, sold $75 million in UNI right as the proposal gained traction.
The proposal includes a retroactive burn of 100 million UNI tokens and an operational merger of Uniswap Labs with the Foundation.

Uniswap whale dumps $75M UNI as "UNIfication" pumps 44% – Insider exit or coincidence?

Coincidental Timing or Insider Knowledge?

Data from Bubblemaps reveals that a specific whale, controlling four wallets that date back to 2020, executed a significant exit. This whale funneled 36 million UNI tokens using a single Coinbase deposit address. In 2025 alone, this entity has shifted $200 million to exchanges. Notably, on 14 May, the whale sold 12 million tokens, and on 10 November, right before the proposal announcement by founder Hayden Adams, they released another 9 million. The last significant sale of $75 million coincided perfectly with the proposal's positive market reaction.

A Surge in Insider Selling

Additional suspicious wallet activities were identified by Lookonchain. One whale moved 2.8 million UNI to Coinbase Prime shortly after the announcement of the proposal. Additionally, another long-term holder cashed out 1.7 million tokens ($15 million) on Binance, choosing to accept a $1.45 million loss in order to sell at the peak. Comments in the crypto community on X highlighted concerns: "Whales pump UNI and retail get dumped," warned one user. Another criticized the situation, stating, "This isn’t accumulation. It’s distribution dressed up as a bull run," while a third suggested it provided the perfect opportunity for insiders to exit.

Understanding UNIfication’s Impact

The UNIfication proposal aims to transform Uniswap's financial landscape. For five years, the platform has generated billions in fees without offering rewards to token holders. The new framework seeks to change that by allocating 16.7% to 25% of liquidity provider fees on v3 pools and a 0.05% on v2 pools, with all proceeds directed toward burning UNI tokens. It also includes a one-time burn of 100 million tokens from the treasury, potentially leading to monthly burns of up to $38 million based on trading volume. Moreover, the introduction of “aggregator hooks” in Uniswap v4 aims to draw in external revenue, complemented by Protocol Fee Discount Auctions.

Market Moves: Growth or Extraction?

While trading volume surged over 500% to $4 billion, elevating UNI's price to $9 and reaching a market capitalization of $5.6 billion, the whale's movements, totaling $200 million in exchange transactions, far outpace the buying activity from retail investors. This trend suggests a scenario that appears less like genuine growth and more like planned extraction. Critics warn that the proposed 16.7% fee structure could signal a “death spiral” for liquidity providers and raise concerns about centralization due to the consolidation of power within a five-person board led by Adams. Though the proposal presents benefits for token holders, it seems that insiders are quickly cashing out.