The Ethereum Foundation Deposited 35,000 ETH into Kraken, Sparking Concerns Within the Investor Community

According to data from the on-chain transaction tracker Lookonchain, the Ethereum Foundation recently made a significant move by depositing 35,000 ETH

Cryptocurrency enthusiasts kept a close eye on the Ethereum Foundation wallet on Monday as a substantial transaction was observed by the on-chain transaction tracker Lookonchain. According to the data, the foundation transferred 35,000 ETH, valued at $94.07 million at the time of the transaction, into the crypto exchange Kraken.

This significant transfer occurred during a minor crypto market rally as the week drew to a close. As a result, the timing and magnitude of this transaction raised concerns among investors, who were eager to assess its potential impact on Ethereum’s price and the overall market stability.

However, in response to these concerns, Aya Miyaguchi, the director of the Ethereum Foundation, clarified that the transfer was part of the foundation’s routine treasury activities. She highlighted that such transactions are necessary for maintaining the foundation’s operations and should not be interpreted as a sign of any negative outlook on the market or Ethereum’s future.

Examining The Transfer Of 35,000 ETH Being Sold At A Later Date

The Ethereum Foundation wallet is among the largest holders of Ethereum, and its transfers are closely monitored by market participants. For the sake of checks and balances, large transactions from the wallet are typically announced beforehand by the Ethereum Foundation.

But this was not the case with the recent transfer of 35,000 ETH into Kraken. After the transaction was highlighted on the social media platform X by Lookonchain, it drew some comments from investors.

One Ethereum softcore developer, who goes by antiprosynthesis.eth on the platform, expressed his concern by questioning how such a large transaction could take place “without as much as a peep.”

In response, Aya Miyaguchi, the director of the Ethereum Foundation, provided some context. She explained that the foundation has an annual budget of around $100 million, and many of the recipients of these funds require payments in fiat currency.

This necessity prompted the conversion of ETH into fiat, which led to the transfer to Kraken. This, in turn, confirmed that the transfer was indeed made in view of selling the ETH tokens.

However, she did clarify that the transfer was not a direct sale and that there would be planned and gradual sales from here on.

As for why the community wasn’t notified before the sale, the director said that the foundation was advised not to do any Treasury activities due to regulatory complications. As such, they were unable to share the plan in advance.

This is part of our treasury management activities. EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any…

— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) August 24, 2024

Current State Of Ethereum At $2,750

At the time of writing, Ethereum is trading at $2,750. After a few days of bullish action, the crypto seems to have created support around $2,730. According to Etherscan, the Ethereum Foundation wallet currently holds 273,273 ETH.

In total, the wallet holds $769 million worth of multiple tokens. The Ethereum Foundation is not the only significant transfer into a crypto exchange in the last few days.

Whale Alerts noted a recent transfer of 300,000 ETH into Coinbase.

Featured image from The US Sun, chart from TradingView

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