Ethereum Foundation Transferred 20K ETH to the Kraken

Key Takeaways

  • Ethereum Foundation transferred 20K ETH to the Kraken
  • A mysterious Ethereum whale has recalled a long position worth $2 billion, indicating a likely crash in ETH price.
  • Vitalik once persuaded the Ethereum Foundation to sell 70,000 Eth to support the development.

According to public blockchain data, a 20,000 ETH (USD 95 million) transaction was conducted from an Ethereum Foundation wallet to the crypto exchange Kraken. However, the Foundation hasn’t said what the huge transfer would be used for.

According to Etherscan information, the funds were sent in the early hours of Thursday UTC time or Wednesday night US time. The transaction was performed using a wallet address that Etherscan identified as an Ethereum Foundation “EthDev” address.

According to analysts, the Ethereum Foundation’s transfer of 20,000 ETH to Kraken is expected to lower the altcoin’s price. In addition, in 2018 and early 2021, the Ethereum Foundation sold Ethereum tokens to pay developers.

Ethereum Foundation Transferred 20K Eth To The Kraken
Ethereum Foundation Transferred 20K ETH to the Kraken

Before the bear market began in May 2021, the Foundation sold Ethereum tokens. Colin Wu, a Chinese journalist, recently disclosed that the 2018 ETH token sale took place during the peak of the altcoin cycle.

A sale of ETH tokens by the Ethereum Foundation has historically prompted a sell-off. Traders believe Vitalik Buterin timed the sale to coincide with a dip in the price of Ethereum, as seen in 2018.

On Bitfinex, a whale’s movement was sparked by a recent transfer (November 11). On Bitfinex, a mysterious whale recalled a $2 billion long position in Ethereum. As a result of the position being recalled, the exchange states that there was no significant influence on the price of ETH.

On Reddit’s/CryptoCurrency subreddit, many expressed optimism about the price of ETH in the future, with one user even suggesting that it may be because exchanges are “lacking ETH liquidity” because “nobody sells.”

Etherscan data also revealed that the transaction was carried out by one of the ETH developers. The transaction was quite similar to another ETH transaction on May 17. The trade which took place on May 17 was estimated to be worth $112 million. Following this enormous transaction, there was a significant market dump, resulting in a 61 % drop in the price of ETH. Many people are now speculating the same thing about today’s transactions.

Vitalik Buterin, the co-founder of Ethereum, was interviewed, and his blockchain project was, unsurprisingly, the most discussed topic. Buterin also discussed the price of ETH, in addition to the company’s forthcoming upgrades. He also admitted when he and his team were able to sell a significant number of coins.

He said that I did get the Ethereum Foundation to sell 70,000 ETH like basically at the top, and that’s doubled our runway now, so it was one good decision that had a lot of impacts.” To put things in perspective, “primarily at the top” would imply a price of about $1,400, which is Ethereum’s all-time high, and a sale of 70,000 coins would net $98 million.

Default image
Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.

Newsletter

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!