The Ethereum Foundation Sold At The Top Again. Did They Know Something We Didn’t?
January 25 2022 - 2:58AM
NEWSBTC
Apparently, the Ethereum Foundation employs incredible traders.
Once again, they managed to cash out at the very top. On November
16th, ETH was worth an all-time high of $4891. On the very next
day, the Ethereum Foundation sent 20,000 ETH to Kraken and sold
them. Is this suspicious at all? Not per se, but this is the second
time that they pull the same magic move. Related Reading |
Why The Ethereum Foundation Launched A Client Incentive Program A
professional trader that goes by the name Edward Morra on Twitter
was the first to spot the trade. “Friendly reminder that ETH
foundation cashed out at the top (again). ETH down 40+% since
then,” he said. Morra also provided a chart that shows ETH’s sharp
decline in price since the sale. $ETHFriendly reminder that ETH
foundation cashed out at the top (again). ETH down 40+% since then
pic.twitter.com/Bp80hEDvK0 — Edward Morra (@edwardmorra_btc)
January 21, 2022 To add insult to injury, the Ethereum Foundation
only paid $20 in gas fees. That might be the most impressive feat
of them all. At the time of writing, the Ethereum Foundation’s
wallet holds 353,318 ETH, which is approximately $835K at current
prices. What Do We Know About The Organization’s Previous Sell-Off?
Back to Morra, his Twitter followers told him that this information
was of no use to them this late in the game. The trader surprised
the world and pulled an ace up his sleeve. As it turns out, Morra
tweeted about the trade at the time it happened. Not only that, he
warned them, “They cashed out 35k ETH on 17th of May this year,
marked on the chart.” Casual 20k ETH cashout by EthDev, sent to
Kraken:https://t.co/w6AbdeW2AJThey cashed out 35k ETH on 17th of
May this year, marked on the chart 👇 pic.twitter.com/sTbUwHSzD4 —
Edward Morra (@edwardmorra_btc) November 11, 2021 As you can see on
the chart, on May 17th the price of ETH was near its previous peak.
And after the Ethereum Foundation sold, ETH trended down for months
and months. Is this a coincidence? Does the foundation employ great
traders? Or, is there something else to this story? Did they dump
on retail ETH holders? Did the Ethereum Foundation know anything
that the rest of the world didn’t? The Ethereum Foundation still
holds 394,787 ETH, and Vitalik said he persuaded foundation to sell
70,000 ETH at the top of 2018 to support the work of developers.
This is a normal operation, but it also means that the Foundation
thought that bear market is coming. — Wu Blockchain (@WuBlockchain)
May 21, 2021 At the time of the first sell-off, journalist Colin Wu
highlighted the trade and said, “The Ethereum Foundation
transferred 35,000 Eth to the Kraken Exchange on May 17. Vitalik
said bubbles could have ended already on May 20.” Analyzing the
move, Wu said, “This is a normal operation, but it also means that
the Foundation thought that bear market is coming.” The gas fee for
this operation was 0.00240474 ETH, or $5.66 at the time of writing.
Wow. ETH price chart for 01/25/2022 on Bitfinex | Source: BTC/USD
on TradingView.com What’s The Ethereum Foundation Anyway? According
to Ethereum’s official site: “The EF is not a company, or even a
traditional non-profit. Their role is not to control or lead
Ethereum, nor they are the only organization that funds critical
development of Ethereum-related technologies. The EF is one part of
a much larger ecosystem.” The Ethereum Foundation distributes funds
to developers via the Ecosystem Support Program and the Fellowship
Program, organizes Devcom, and more. To do all that, they surely
need Fiat currency in some capacity. The trade makes sense from
that angle. Related Reading | Ethereum Foundation Devs Discuss ETH2
Launch & Economics The question, though, is, did they know that
a crash was coming? And if they did, did they reach that conclusion
through technical and on-chain analysis or by… other methods?
Featured Image by PatriestB on Pixabay | Charts by TradingView
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