Analyzing the Sell Alert from the Ethereum Foundation: A $100 Million ETH Dump
Sell Alert: Ethereum Foundation to Dump $100 Million Worth of ETH
The Ethereum Foundation, the core developer of Ethereum (ETH), made waves in the cryptocurrency market this Friday, August 23. As cryptocurrencies surged, its treasury account sent 35,000 ETH—worth nearly $100 million—to Kraken, a leading crypto exchange.
Market Reactions and Community Concerns
With the on-chain activity, the Ethereum community demanded an explanation and a disclosure regarding this potential massive sell-off. Aya Miyaguchi disclosed that the Foundation has a $100 million yearly budget mainly to pay for grants and the team’s salaries. Notably, Miyaguchi explained that the Foundation will not sell all at once but is preparing for gradual sales on Kraken.
- This is part of our treasury management activities.
- There was a long period when we were advised not to do treasury activities.
- This transaction is not equal to a sale but part of planned and gradual sales.
Comparison with XRP Sales
Interestingly, the Ethereum Foundation's disclosed yearly budget is near the same amount Ripple sells monthly in the XRP token. Finbold has been reporting Ripple's selling activities, originating from the monthly XRP unlocks, since August of last year.
- Ripple has prepared for this month’s 200 million XRP sell-off.
- The company has sold 1.826 billion XRP from its Treasury year-to-date.
- Ethereum's market cap is nearly ten times higher than XRP.
As of this writing, Ethereum trades at $2,776, and the Foundation’s yearly budget equals 0.03% of all 120.3 million ETH in circulation. Therefore, despite creating some selling pressure, these activities will hardly impact the native token’s price if its demand continues growing.
Nevertheless, investors should remain cautious and carefully monitor whale activities like those of the Ethereum Foundation.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.