- The Ethereum Foundation recently sold 10K ETH on Kraken to fund several targets in its roadmap.
- The move garnered mixed sentiment across the crypto community.
The Ethereum Foundation (EF) recently confirmed its plan to “convert” 10,000 ETH via centralized exchanges. The non-profit organization stated that the move was necessary to fund developments within the Ethereum ecosystem. It assured that the “conversions” will take place over multiple smaller orders instead of a single transaction to prevent, or at least mitigate, wild price fluctuations in the market.
The announcement elicited mixed sentiment from crypto community members, with several people pointing out the careful wording of the EF’s notice. They called out its usage of the word “convert” in this context, even if transferring tokens in exchanges already amounts to selling.
Onchain Data Confirms Ethereum Foundation’s 10K ETH Sale
Later, onchain data from Arkham Intelligence showed that a wallet belonging to the foundation indeed dumped 10,000 ETH on Kraken in a single transaction instead of the promised “multiple smaller orders.” It netted the EF $42.7 million.
The transaction contributed to Ether’s fluctuation between a $4,260.46 low and a $4,394.42 high in the last 24 hours. Additionally, the ensuing volatility led to a $64.25 million liquidation in ETH within the same period, consisting of $32.81 million longs and $31.45 million shorts.
Looking past the event, EF explained that the sale, or “conversion,” aligned with the “public treasury policy” it laid down in June.
Reasons for the Ether Unloading From EF
According to the EF’s roadmap, the ETH sale focuses on three areas of improvement within the Ethereum ecosystem. These include research and development (R&D), grants, and donations.
The R&D efforts aim to make the Ethereum chain better. It centers on enhancing scalability, security, and decentralization.
The grants intend to incentivize developers and projects with significant contributions to the Ethereum ecosystem. Meanwhile, the donations will aid other non-profit organizations to encourage more innovations and cooperation across the blockchain sector.
Despite the division of the crypto community over the matter, Onesafe claimed “most people understand this is just business as usual for the Ethereum Foundation.” It’s akin to companies selling stocks to fuel their operations, acquisitions, or other ventures. In this case, it’s for supporting several key areas in the push of the EF to make Ethereum thrive, especially now that it is experiencing an unprecedented level of institutional demand.
Overall, the EF’s sale, or rather “conversion,” ultimately reinforces the long-term viability of the Ethereum ecosystem.
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