Key Points
Jeffrey Wilcke, co-founder of Ethereum, has transferred Ether valued at $75.2 million to Kraken.
The move has sparked speculation about a possible market correction.
On-chain data revealed that Wilcke sent 20,000 Ether (ETH) to the centralized crypto exchange based in California.
The reason behind Wilcke’s action remains unclear.
However, a deposit to an exchange often indicates an intention to sell.
Past Transactions and Market Impact
Ethereum community members have pointed out that Wilcke’s past transactions have occasionally been followed by price drops in Ethereum.
For example, Ethereum’s price fell after Wilcke deposited 15,000 ETH on January 6, 2021.
His transfers of 4,300 ETH and 10,000 ETH on February 11 and February 14, 2024, respectively, were also followed by price declines.
Despite the recent transaction, Wilcke still holds 106,006 ETH, which is valued at over $384 million according to LookOnChain.
Ethereum leaders and organizations selling ETH or making exchange deposits have always been criticized by the public.
Earlier this year, the foundation sold 4,266 ETH, worth over $12 million, which led to backlash from users accusing it of profiting from reserves.
The non-profit organization was criticized for allegedly profiting from its Ether reserves.
Ethereum co-creator Vitalik Buterin explained that the foundation liquidates portions of its holdings to fund initiatives and finance its operations.
The foundation’s annual report showed that most of its cash was set aside for supporting the Ether ecosystem or rewarding projects that focus on advancing the largest decentralized finance blockchain.
Ether’s price saw an increase along with other cryptocurrencies after the U.S. general elections on November 6.
As the total crypto market fluctuated to $3.4 trillion, ETH rose to $3,550.
The token was around 28% off its previous all-time high of $4,878.
