Uncertainty Surrounds Ethereum as ICO Participants and Insiders Transfer Millions of ETH
In September, the crypto market experienced relatively flat price performances, leaving uncertainty as the prevailing narrative for most crypto assets, including Ethereum (ETH). To replicate the meteoric gains of previous bull cycles, significant transfers from Ethereum co-founder Vitalik Buterin and ETH initial coin offering (ICO) participants have caught attention in the past two days. Notably, an ETH ICO wallet linked to a core developer of the network recently became active after eight years.
The Transfers
On September 20, Whale Alert revealed that an ETH ICO address with 200 ETH moved for the first time in eight years. The ICO participant transferred 192.2 ETH (approximately $313.2k) to Coinbase in two transactions. It was later discovered that the ICO address belonged to Ethereum core developer Danno Ferrin.
Over the past two days, Ethereum ICO participants and Vitalik Buterin have collectively moved about $31 million worth of ETH. On September 18, an ICO participant transferred 6k ETH (around $9.96 million) to Kraken. The following day, another whale sent out 10k ETH (approximately $16.5 million) to multiple exchanges.
Vitalik Buterin himself transferred 300 ETH (worth $490k) to Kraken on September 19.
Potential Price Dump?
Speculation of an impending price dump has arisen as these large transfers to exchanges typically indicate an intent to sell. The fact that ICO participants purchased ETH at a rate of $0.31 adds fuel to these speculations, considering the substantial gain at current prices despite the extended crypto winter.
Ethereum’s Price Stability
Despite the transfer surge, Ethereum’s price has remained stable, with a negligible 0.94% loss in the last 24 hours. At the time of writing, it is trading at $1,629, according to CoinMarketCap.
Wallet Hacks and Psychological Impact
There are also speculations that recent movements could be a result of wallet hacks. Mark Cuban’s wallet was recently hacked for about $900k after months of dormancy. The involvement of Ethereum insiders in these transfers further compounds the potential psychological impact on the market.
Hot Take: Uncertainty Looms Over Ethereum as ICO Participants and Insiders Move Millions of ETH
The recent surge in large ETH transfers from ICO participants and insiders has raised concerns about a potential price dump. While these transfers indicate an intent to sell, Ethereum’s price has held steady so far. However, the involvement of Ethereum insiders adds to the uncertainty surrounding the market. It remains to be seen how Ethereum will weather this storm and whether it will break down or withstand the pressure. As crypto investors, it is crucial to stay informed and monitor these developments closely to make informed decisions about your investments.
By
By
By
By
By