Ethereum Foundation transfers 15,000 ETH to Kraken, signaling the end of the mini bull market and meme frenzy?
In order to raise more developer funds, the Ethereum Foundation sold Ether at a high point in 2018 and also unloaded it in the price range of nearly $5,000 in 2021. Currently, ETH has slightly dropped below $2,000. Will this be the high point for this year?
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Ethereum Foundation, EF
The Ethereum Foundation is a non-profit organization dedicated to advancing Ethereum-related technologies and providing financial or non-financial support to a wide range of Ethereum projects and entities.
The EF is not the only organization providing development funding for Ethereum-related technologies, but the EF itself also has a need to recruit full-time developers.
Ethereum Foundation's Notable Sell-off Point 1: 2018 Peak
One of the most notable actions of the Ethereum Foundation was when founder Vitalik Buterin convinced the EF to sell 70,000 ETH and cash out nearly $100 million when the price of Ether was at a high in 2018.
Ethereum Foundation's Notable Sell-off Point 2: 2021 Peak
On November 11, 2021, the Ethereum Foundation sent 20,000 ETH to the Kraken exchange when the price of ETH was around $4,700.
Given the lessons learned from 2018, this action sparked much discussion within the crypto community. Larry Cermak, the current CEO of The Block, pointed out at the time:
"If, hypothetically, the early investors in SOL, the venture capital firm Mulitcoin, sent $90 million worth of SOL to an exchange, the community's reaction would be one of widespread panic and ridicule."
Discussion at the time: Was the Ethereum Foundation's public and transparent sale of 20,000 ETH to an exchange on 11/11 appropriate?
The Ethereum Foundation's recent sale also occurred near a peak, as Coinbase prices showed the historical high for ETH at $4,867.
Ethereum Foundation (Possibly) Selling at $2,000 – Is this the Peak for the Year?
ETH reached a high of $2,020 on the morning of May 6, dropping to $1,969 at the time of submission, which also caught the attention of the community.
Andrew Kang, co-founder of Mechanism and previously seen as a target for following, immediately opened a short position upon receiving this news.
Learn more about Andrew Kang: Is Meme Mania a Sign of the Market Top? Andrew Kang Sells All ARB, Goes Short on Bitcoin and ETH
When I see Ethereum foundation dumping, I rush in to sell, adding fuel to the fire https://t.co/IAow3P1k1k
— Andrew Kang (@Rewkang) May 6, 2023