Michaela Alvez
Ethereum co-founder Jeffrey Wilcke has moved 20,000 ETH to the global crypto exchange Kraken just hours after Ethereum’s price surpassed $3,600 earlier today.
Wilcke has been steadily selling his initial 463,203 ETH allocation since 2016. His recent $72 million transfer to Kraken is the latest example of this ongoing liquidation.
From 2016, Wilcke has deposited a total of 356,805 ETH to exchanges. Before the 2021 bull market, he transferred 290,505 ETH to exchanges, with an average deposit price of $190 per token. Wilcke resumed selling in the summer of 2023, liquidating over 63,000 ETH during that period.
Although his ETH holdings have decreased, Wilcke still retains 106,000 ETH worth approximately $382 million based on current market prices. He may choose to sell his remaining ETH holdings at a later time, potentially yielding a higher average price. The transfers to exchanges do not necessarily indicate selling and could be preparations for a potential rally in ETH prices.
In May this year, Wilcke sold 10,000 ETH for roughly $37 million. His recent deposit to Kraken marks his fourth ETH liquidation for 2024, bringing the total value of his sales to approximately $148 million.
CoinGecko data shows that Ethereum made a strong move toward $3,700 early Thursday, but the momentum eased slightly, with ETH trading at around $3,570 at the time of writing.
Concerns surrounding ETH stemmed from its continued delay in a major rally, with the asset remaining below $4,000, while Bitcoin surged into a new price range.
Vitalik Buterin has also continued to sell hundreds of ETH, primarily for charitable donations and investments. Earlier this week, he made headlines for selling four meme coins worth over $81,000 before donating a significant sum to charity.
Whale Selling: Cause for Concern?
The community often criticizes the selling activities of large holders, or “whales,” due to concerns about market stability and the potential erosion of trust in the network. Additionally, such sales can be seen as a sign of waning confidence in Ethereum’s long-term prospects, especially when coming from early investors or influential figures.
The supply of ETH is widely distributed, with no single entity holding enough control to significantly influence market movements. Over 34.2 million ETH are currently staked, while whales collectively hold 65.1 million ETH, encompassing assets in exchange for wallets, vaults, and other reserves.
ETH continues to be a highly valued asset, with many early investors choosing to hold onto their tokens. Instead of selling, they often support other projects or stake their holdings to generate passive income.
Read More
- Satoshi Nakamoto Unmasked? New Theory Links Bitcoin Creator to 2010 Whale
- Shiba Inu $2.5 Billion Secret: A Single Whale Reportedly Controls 10% of the Supply
- Bitwise Files for Bitcoin-Ethereum ETF With SEC, Plans NYSE Launch
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
