As a seasoned analyst with years of experience in the cryptocurrency market, I must admit that the recent transactions by the Ethereum Foundation have raised some eyebrows. While it is important to remember that the foundation’s primary role is to support the Ethereum blockchain, its consistent selling of ETH might be concerning for some investors.
This year, the Ethereum Foundation continues its trend of disposing Ethereum; the latest transaction involved selling 450 ETH and receiving approximately 1.029 million DAI in return.
Based on data from SpotOnChain, it’s reported that on September 9th, the Ethereum Foundation, a key non-profit entity backing the Ethereum blockchain, divested approximately 450 Ether and exchanged it for the stable digital currency known as DAI.
🚨🚨 I’ve just learned that, as a crypto investor, the Ethereum Foundation has sold another batch of ETH! In the last 10 minutes, they offloaded 450 ETH for approximately 1.029 million DAI. Over the past 4 days, they’ve sold a total of 550 ETH, equivalent to around 1.28 million dollars, with an average price per ETH of about $2,324. Keep an eye on @spotonchain for more updates on this developing story.— Spot On Chain (@spotonchain) September 9, 2024
On September 5th, a transaction took place which involved selling 100 ETH for 241,000 DAI, adding to the Foundation’s total ETH sales in the year 2024, making it 3066 ETH so far.
Moreover, on September 6th, the Foundation deposited an extra 1,000 ETH, equivalent to approximately $2.38 million, into a different multi-signature wallet. It is likely that this was exchanged for stablecoins. Subsequently, another transfer of 1,000 ETH took place on the following day.
As a crypto investor, I’ve noticed that so far this year, the Ethereum Foundation has managed to amass around 8.66 million DAI, while keeping a sizable 274,012 ETH spread across seven digital wallets. This substantial hoard translates to an impressive value of roughly $637 million at current market prices.
Recently, Ethereum co-founder Vitalik Buterin moved a total of 3,800 Ether (approximately $9.99 million) to a multi-signature wallet. This transaction was split into two parts: 3,000 Ether on August 9 and an additional 800 Ether on August 30. Subsequently, 760 Ether from the recipient wallet was offloaded for 1.835 million USDC at an average price of around $2,414 per Ether.
The transfers sparked accusations that Buterin was selling ETH for profits, but he recently denied these claims, stating the funds were intended for supporting ecosystem development and philanthropic efforts.
Insiders offer clarification
Although the Ethereum Foundation has remained silent about its recent ETH sales, it’s been pointed out by insiders that these transactions align with their typical financial approach.
Aya Miyaguchi, head of the Ethereum Foundation, has previously noted that their yearly budget of approximately $100 million is mainly spent on operational expenses, grants, and salaries – expenditures that frequently necessitate fiat currency. In order to cover these costs, the Foundation intelligently swaps some of its ETH holdings into stablecoins such as DAI.
“There will be planned and gradual sales,” Miyaguchi noted at the time.
In simpler terms, Justin Drake, a researcher at the Ethereum Foundation, announced they will soon publish a financial report offering more details about recent transactions.
The price of Ethereum (ETH) has been affected by recent selling activities, causing it to decrease by approximately 11.9% over the last month. Some investors are concerned that this selling might lead to even more price decreases.
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2024-09-09 13:00