$6 Million ETH Sale: Ethereum Foundation Joins Whale Liquidation Frenzy

Christian Encila

8 months ago

3 mins read

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The Ethereum Foundation was at the center of attention recently concerning a liquidation plan it has set in place to sell parts of its Ether balance.

According to the on-chain tracker Lookonchain, a wallet linked to the foundation moved 2,500 ETH, valued around $6 million, to the exchange Bitstamp on October 8, 2024. This is part of an increasing trend in which large holders, colloquially known as “whales,” are selling their holdings in the face of this volatile market environment.

A whale deposited 11,456 $ETH($27.8M) to #Binance in the past 40 minutes!https://t.co/0L5r2u9wF9 pic.twitter.com/gNZI3pKAEx

— Lookonchain (@lookonchain) October 8, 2024

Significant Transactions Uncovered

Lookonchain claims this is not the only transaction this foundation has lately done. ETH sold overall in 2024 is as high as 3,766, which brought $10.46 million. The organization sold 950 ETH in September, equal to $2.27 million. They sell them often, roughly every 11 days. The transaction averages about 151 ETH in size. The foundation still retains a significant sum: 271,274 ETH, or about $655 million.

Market Reactions And Jitters

The crypto community has a reason to worry over the continuous selling of Ethereum. Much of the investors have severely feared that this huge liquidation might lead to downward pressure on ETH prices. During the last 14 days, the price of Ethereum went down by around 8%.

ETH market cap currently at $293 billion. Chart: TradingView.com

This has led some analysts to speculate that these selling events are contributing factors behind the bearish market of ETH. Community commentators are divided between interest and concern regarding the history of the wallet by the foundation, how it affects the market dynamics, Lookonchain has disclosed.

Ether up in the last 24 hours. Source: CoinMarketCap

Future Financial Planning

Such sales, according to Aya Miyaguchi, an executive director of the Ethereum Foundation, are part of a deliberate financial strategy – working to pay for operational costs and cover the costs of ongoing projects. The entire annual budget is estimated to be around $100 million, with some of these costs – such as salaries and grants – requiring fiat currency. Thus, turning part of the ETH reserve into stablecoins like DAI has become routine.

With the Ethereum Foundation still working through its financial situation in a volatile market, only time will tell how these continued sales will affect both the price of ETH and the robustness of the Ethereum ecosystem. With quite a bit of resources still locked up by the foundation, individuals are paying close attention to look for changes or constructive/violent reactions in the market.

Featured image from ETF Stream, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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