Ethereum Foundation’s $96M Donation Raises Eyebrows and Fuels Speculation
Ethereum (ETH) fell slightly on Monday, closing at $2,737, a 0.2% decrease. Although the price has only declined somewhat, could be a price correction.
Ethereum (ETH) fell slightly on Monday, closing at $2,737, a 0.2% decrease. Although the price has only declined somewhat, could be a price correction.
If ETH turns to move upward, there could be a big rally. Market experts are watching Ethereum’s movement because a break above the present levels can lead to additional gains.
The ability of ETH to gain the momentum required for a potential spike in the next few days is being actively observed by traders.
A Kraken exchange deposit address received 35,000 ETH, or approximately $96 million, on August 23, 2024, according to the Ethereum Foundation.
This recent transfer of $96M worth of ETH to the Kraken Exchange wallet address has drawn market attention.
Note that #Ethereum Foundation deposited 35,000 $ETH($94.07M) into #Kraken just now!🚨https://t.co/1DMzORJ9Eg pic.twitter.com/91x2ik2kbH
— Lookonchain (@lookonchain) August 23, 2024
It is because, the event is similar to a comparable incident in December 2020, when the foundation sold 100,000 ETH at roughly $635 apiece, the price of ETH skyrocketed by more than 500% in the months that followed.
After the 2020 December transfer, in May 2021, about 5 months later, ether reached a peak of $4,182. Later, it further spiked to almost $4,891 in November 2021.
According to this historical context mentioned by Arkham Intelligence, the current transfer may indicate another big shift in Ether’s price.
The Ethereum Foundation famously sold the top in both May and November 2021.
But in 2020, they sold 100K ETH, right before ETH pumped 6x.
Last night they sent another 35K ETH to Kraken, worth $95M.
Did they get it right this time? pic.twitter.com/bYLOyv8mGQ
— Arkham (@ArkhamIntel) August 24, 2024
Explaining the details of recent ETH transfer to Kraken Exchange, Ethereum Foundation Executive Director Aya Miyaguchi said, “To be clear, this is not a direct sale; rather, it is a routine aspect of treasury administration.”
She clarified that the transfer aids in the management of the $100 million yearly budget of the foundation, which is composed of salaries and grants, some of which are funded by fiat. This clarification provided by Miyaguchi received a lot of criticism.
The foundation’s financial procedures, according to detractors, lack openness and guidance, despite Miyaguchi’s claims. This raises questions about how best to allocate cash for Ethereum’s expansion and stability.
In short, the Ethereum Foundation is facing criticism for how it handles its finances, highlighting a balance between being transparent and meeting operational needs.
Some believe the foundation’s spending is necessary to support its mission, while others are concerned it may not benefit Ethereum’s long-term growth. The debate over these decisions is expected to continue.
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