Bitrabo Editorial
The Ethereum Foundation made a substantial move recently by transferring 35,000 ETH, valued at $94.07 million, to the Kraken exchange. This action occurred amidst a minor rally in the crypto market, sparking concerns in the Ethereum investor community.
The transfer has led to speculations about its potential impact on Ethereum’s price and market stability. In response, Aya Miyaguchi, the director of the Ethereum Foundation, explained that the transfer was part of routine treasury operations and should not be viewed as a negative signal for the market or Ethereum’s future.
Exploring the 35,000 ETH Transfer
The Ethereum Foundation wallet is a major holder of Ethereum, and transactions from this wallet are closely watched by the market. The recent transfer of 35,000 ETH to Kraken was not pre-announced as is customary. This raised concerns among investors, prompting inquiries about the significant transaction.
Aya Miyaguchi disclosed that the foundation operates with a $100 million annual budget, with many recipients requiring fiat payments. This necessitated the conversion of ETH to fiat, leading to the transfer to Kraken. While confirming the intent to sell ETH, she clarified that it would be done gradually and not in a direct sale.
The foundation refrained from disclosing the sale plans in advance due to regulatory advice against treasury activities. This constraint prevented them from sharing the details with the community beforehand.
Current Status of Ethereum
As of now, Ethereum is priced at $2,750, having established support around $2,730 after a period of bullish movement. The Ethereum Foundation wallet holds 273,273 ETH worth $752 million, with a total of $769 million in various tokens.
In a similar move, Whale Alerts reported a recent transfer of 300,000 ETH to Coinbase, indicating significant activity in the crypto exchange space.
Featured image from The US Sun, chart from TradingView