According to data from on-chain transaction tracker Lookonchain, the Ethereum Foundation recently made a major move by depositing 35,000 ETH, worth $94.07 million, on the cryptocurrency exchange Kraken. This large transaction has raised concerns within the Ethereum investor community, especially since it occurred During a slight rise in the cryptocurrency market As the week comes to an end.
The timing and size of the transfer has led to speculation among investors, who are concerned about its potential. Impact on Ethereum Price And overall market stability. In response to these concerns, Aya Miyaguchi, director of the Ethereum Foundation, explained that the transfer was part of the foundation’s routine treasury activities.
She stressed that such transactions are necessary to maintain the organization’s operations, and should not be interpreted as an indication of any negative view of the market or the future of Ethereum.
35000 ETH transfer check
The Ethereum Foundation wallet is one of the largest holders of Ethereum. Therefore, transfers from the wallet are closely monitored by market participants. Due to the nature of checks and balances, large transactions on the wallet are usually announced in advance by the Ethereum Foundation. However, this was not the case with the recent transfer of 35,000 ETH to Kraken.
After the deal was revealed on social media platform X by Lookonchain, it sparked some investor comment. One Ethereum softcore developer, known as antiprosynthesis.eth on the platform, said, expressed his concerns By questioning why such an important deal could have happened “without the slightest notice.”
In response, Aya Miyaguchi, director of the Ethereum Foundation, provided some context. She explained that the foundation operates on an annual budget of around $100 million, and many of the recipients of that money require payments in fiat currency.
This resulted in the ETH being converted to fiat currency, which led to its transfer to Kraken. This in turn confirmed that the transfer was indeed done with the intention of selling ETH tokens. However, Kraken clarified that the transfer was not a direct sale and that there would be planned and gradual sales from here on out.
As for why the community was not notified before the sale, the director said the organization was advised not to do any treasury-related activities due to regulatory complexities. Therefore, they were unable to share the plan in advance.
This is part of our treasury management activities. EF’s budget is about $100 million per year, which is largely made up of grants and salaries, and some beneficiaries can only accept money in paper currency. This year, there was a long period of time where we were advised to do nothing…
– Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) August 24, 2024
Current state of Ethereum
At the time of writing, Ethereum is trading at $2,750. After a few days of bullish movement, the cryptocurrency appears to have made Support is built around $2,730. According to EtherscanThe Ethereum Foundation wallet currently holds 273,273 ETH worth $752 million. In total, the wallet holds $769 million in multiple tokens.
Ethereum Foundation isn’t the only major crypto exchange transfer in the past few days. Whale Alerts I noticed a recent transfer of 300,000 ETH at Coinbase.
Featured image from The US Sun, chart from TradingView
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