On-chain information tracker Arkham Intelligences exposed that the Ethereum Foundation just recently moved $96 million in Ether to a Kraken exchange account. This considerable transfer has actually triggered dispute amongst observers, who question how it may affect the cost motion of Ether (ETH).
The rate of Ether skyrocketed more than 500% in the months following the Ethereum Foundation’s substantial sale of ETH in May and November 2021.
While the structure’s previous sales set off considerable market rallies and decreases, the effect of the current sale stays unpredictable.
Ethereum Foundation Sale Impact
The info from Arkham discusses that the Ethereum Foundation has a performance history of making prompt sales. In 2020, the structure launched 100,000 ETH, roughly $63 million, when ETH’s cost was $635.
The Ethereum Foundation notoriously offered the top in both May and November 2021.
In 2020, they offered 100K ETH, right before ETH pumped 6x.
Last night they sent out another 35K ETH to Kraken, worth $95M.
Did they get it right this time? pic.twitter.com/bYLOyv8mGQ
— Arkham (@ArkhamIntel) August 24, 2024
5 months after the sale, on May 12, 2021, the rate of Ether increased to $4,182, practically a sixfold boost. Later on that year, Ether struck a cycle high of $4,891. This sale, which took place at an essential inflection point, sustained stories about the structure’s “offer the top” propensity.
On May 6, 2023, the structure moved about $30 million worth of ETH to the Kraken exchange. ETH’s cost somewhat decreased after this deal, stopping by 4.8% to $1,900. This decline didn’t have a substantial effect since the total market was recuperating, so the rate rapidly supported.
On August 23, 2024, the Ethereum Foundation performed another significant relocation. This time, it sent out roughly 35,000 ETH worth $96 million to a wallet related to the Kraken exchange.
Keep In Mind that #Ethereum Foundation transferred 35,000 $ETH($94.07 M) into #Kraken recently! https://t.co/1DMzORJ9Eg pic.twitter.com/91x2ik2kbH
— Lookonchain (@lookonchain) August 23, 2024
The current deal triggered speculations about whether the structure had actually found another minute of market patterns. Arkham asked in the X post, “Did the Ethereum Foundation nail the timing when again?”
The Ethereum Foundation notoriously offered the top in both May and November 2021.
In 2020, they offered 100K ETH, right before ETH pumped 6x.
Last night they sent out another 35K ETH to Kraken, worth $95M.
Did they get it right this time? pic.twitter.com/bYLOyv8mGQ
— Arkham (@ArkhamIntel) August 24, 2024
Aya Miyaguchi, the executive director of the Ethereum Foundation, attended to the reports. She clarified that this current deal became part of the structure’s wider “treasury management activities.”
This becomes part of our treasury management activities. EF has a spending plan of ~$100m each year, which is mainly comprised of grants and wages, and a few of the receivers are just able to accept in fiat.