According to data from the on-chain transaction tracker Lookonchain, the Ethereum Foundation recently transferred 35,000 ETH, valued at $94.07 million, to the crypto exchange Kraken. This significant transaction has raised concerns within the Ethereum investor community, particularly as it coincided with a minor crypto market rally at the end of the week.
The timing and scale of the transfer have sparked speculation among investors about its potential impact on Ethereum’s price and market stability. In response, Aya Miyaguchi, the director of the Ethereum Foundation, clarified that the transfer was part of the foundation’s routine treasury activities. She emphasized that such transactions are necessary for maintaining the foundation’s operations and should not be interpreted as an indicator of negative market sentiment or doubts about Ethereum’s future.
Details of the 35,000 ETH Transfer
The Ethereum Foundation wallet is one of the largest holders of Ethereum, so transfers from it are closely monitored by market participants. Typically, significant transactions from the wallet are announced in advance by the Ethereum Foundation. However, this recent transfer of 35,000 ETH to Kraken was not pre-announced.
When the transaction was revealed on social media platform X by Lookonchain, it generated concern among investors. An Ethereum developer, known as antiprosynthesis.eth on the platform, questioned why such a significant transfer occurred “without as much as a peep”.
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In response, Aya Miyaguchi provided context, explaining that the foundation operates with an annual budget of around $100 million and many recipients of these funds require payment in fiat currency. This necessity prompted the conversion of ETH into fiat, leading to the transfer to Kraken. Miyaguchi confirmed that the ETH was indeed converted for sale but noted that the sales would be planned and gradual rather than immediate.
Regarding the lack of prior notification, Miyaguchi explained that the foundation was advised not to disclose its treasury activities due to regulatory complications, which prevented them from sharing the plan in advance.
Current State of Ethereum
As of this writing, Ethereum is trading at $2,750, with support around $2,730 after a few days of bullish action. According to Etherscan, the Ethereum Foundation wallet currently holds 273,273 ETH, worth approximately $752 million. In total, the wallet contains $769 million worth of various tokens.
This transfer isn’t the only significant one into a crypto exchange in recent days. Whale Alerts also noted a transfer of 300,000 ETH into Coinbase.
Cre: Bitcoinlist
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