The Ethereum Foundation seems to be adopting a strategic approach amid ongoing market volatility by planning to liquidate $6 million in ETH.
The latest developments reveal that the foundation has made noteworthy transactions involving substantial amounts to the Bitstamp exchange. A specific wallet linked to the Ethereum Foundation recently transferred 2,500 ETH, estimated to be worth around $6.06 million, into the Bitstamp exchange. This transaction unfolded in two parts, with each part involving 1,250 ETH.
The initial transaction took place at 08:14:35 AM UTC, and was quickly followed by a subsequent one at 08:19:23 AM UTC.
This significant transfer of ETH to a centralized exchange has led many to speculate about a potential sell-off. Notably, Ethereum has been facing bearish pressure, with ETH’s value dropping by approximately 3% today.
Interestingly, the wallet connected to the foundation initially received 51,251 ETH from the Ethereum Foundation in November 2015. At that time, the value was $51,200, which has since grown dramatically to approximately $124.5 million.
Current Trends in Ethereum Token Sales
The move to liquidate $6 million in Ethereum aligns with activities by an early Ethereum ICO participant, who has been selling large quantities of ETH. This individual initially acquired 150,000 ETH during Ethereum’s Genesis block event valued at $46,500. Over the last few weeks, they have methodically reduced their holdings.
Since September 22, this whale has divested 45,000 ETH, garnering $113.2 million at an average price of $2,516 per ether. On October 3, another tranche of 19,000 ETH was sold, yielding about $47.54 million, showcasing an ongoing trend in Ethereum sales.
Nonetheless, the participant maintains a significant position of 94,500 ETH, valued at approximately $230.2 million.
Prolonged Liquidation Efforts by Ethereum Holdings
The consistent liquidation by the Ethereum Foundation reaffirms their strategic sell-off of ETH holdings. Noteworthy is the September 30 report highlighting the foundation’s sale, alongside co-founder Vitalik Buterin, of 749 ETH, translating to about $1.98 million in a single day.
Further diversifying in stable assets, the foundation converted $1.029 million worth of ETH into stablecoins on September 9. According to data from Lookonchain, throughout September, their transactions amounted to selling 3,766 ETH, valued at $10.46 million. Moreover, a separate transaction on September 21 involving 300 ETH resulted in $763,000 at an average price of $2,543 per ETH.
Disclaimer: This article is intended for informational purposes only and should not be taken as financial advice. The opinions expressed herein are those of the author and do not necessarily reflect the views of The Crypto Basic. We encourage readers to conduct comprehensive research before making any investment decisions. The Crypto Basic is not liable for any financial losses.
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