Looking at the Bitcoin and Ethereum charts has been less fun in the past few days. Now it has come to light that the Ethereum Foundation paid out a large sum of ETH shortly before the crypto correction.
Ethereum Foundation sold large ETH holdings?
The Ethereum Foundation, a non-profit dedicated to supporting the Ethereum blockchain and its ecosystem, has reportedly paid out a large sum of ETH at the November high. The findings were brought to light by Edward Morra, a well-regarded cryptocurrency trader and technical analyst, who examined the foundation's historical account data.
The sale was probably at its peak
Ethereum Foundation participants seem to know very well when to withdraw part of their stake before the music stops.
Morra watched the foundation sell 20,000 ethers on the Kraken exchange as the world's second largest cryptocurrency by market value hit an all-time high. ETH hit an all-time high of $4,895 on Nov. 16, while the Ethereum Foundation dumped its coins the next day.
Since then, the cryptocurrency has been in a downtrend. At the time of publication, it is worth $2,460, a 50% price drop as the broader crypto market takes a massive hit.
The trader noted that this wasn't the first time officials from the foundation had deftly sold their ETH at or near the top, while presumably anticipating a pullback. For example, they converted 35,000 ethers into fiat currency on May 17 last year, right after the cryptocurrency hit its previous peak.
Holdings of the Ethereum Foundation
Today, the foundation's main address, EthDev, holds over 353,318 ETH. That amount equates to approximately $832 million based on today's prices.
However, one should not write off Ethereum just yet due to the sell-off by the Ethereum Foundation. Blockchain is currently the dominant home for some of the hottest cryptocurrency trends, from decentralized finance (DeFi) to non-fungible tokens (NFTs).
The network will also move to a Proof-of-Stake (PoS) consensus mechanism, which should not only reduce energy consumption, but also improve scalability and drastically reduce gas fees. All of these forthcoming developments will likely help Ethereum retain its lead as the dominant blockchain for smart contracts.
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