Evidently, the Ethereum Foundation is home to some incredible traders. Again, they were able cash out at top. In November 16, ETH reached a record $4891 value. Within hours, the Ethereum Foundation had sent Kraken 20,000 Ethereum and they sold them. This is suspicious? It’s not suspicious per se. But this is actually the second instance of the magic move.
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Edward Morra (a trader) was the one who first saw the trade. “It is a friendly reminder that the ETH Foundation cashed at the top again. ETH is down 40%+% from then,” he said. Morra also provided a chart that shows ETH’s sharp decline in price since the sale.
— Edward Morra (@edwardmorra_btc) January 21, 2022
To make matters worse, the Ethereum Foundation spent only $20 on gas fees. It might just be the greatest feat among them all.
As of the date of writing the Ethereum Foundation’s walletHolds 353,318 Ethereum, or $835,340, at current prices.
What Do We Know About The Organization’s Previous Sell-Off?
His Twitter followers informed him that they didn’t use the late information. Surprised the entire world, he had an extra ace in his back. He tweeted the news about the trade right as it occurred. Not only that, he warned them, “They cashed out 35k ETH on 17th of May this year, marked on the chart.”
Casual 20k ETH cashout by EthDev, sent to Kraken:https://t.co/w6AbdeW2AJ
The chart shows that they cashed 35k ETH the 17th May of this year.👇 pic.twitter.com/sTbUwHSzD4
— Edward Morra (@edwardmorra_btc) November 11, 2021
You can see that the price of ETH reached its highest point on May 17, 2017. After the Ethereum Foundation sale, ETH prices plummeted for many months. This is a coincidence? Are the traders in this foundation great? Is there more to the story? Are they dumping retail ETH holders on the streets? Did the Ethereum Foundation know anything that the rest of the world didn’t?
Vitalik claimed that the Ethereum Foundation has 394,787 Ethereum, but that Vitalik persuaded the foundation to buy 70,000 Ethereum to fund the work of developers. It is normal, however it is also a sign that the Foundation believes that a bear market will soon be.
— Wu Blockchain (@WuBlockchain) May 21, 2021
At the time of the first sell-off, journalist Colin Wu highlighted the trade and said, “The Ethereum Foundation transferred 35,000 Eth to the Kraken Exchange on May 17. Vitalik said bubbles could have ended already on May 20.” Analyzing the move, Wu said, “This is a normal operation, but it also means that the Foundation thought that bear market is coming.”
This operation cost 0.0024474 Ethereum, which is $5.66 at time of writing. Wow.
Source: BTC/USD on TradingView.com| Source: BTC/USD on TradingView.com
What’s The Ethereum Foundation Anyway?
According to Ethereum’s official site:
“The EF is not a company, or even a traditional non-profit. They are not the sole organization funding critical Ethereum-related technology development. The EF is one part of a much larger ecosystem.”
Through the Ecosystem Support Program (and the Fellowship Program), the Ethereum Foundation provides funds for developers, organises Devcom and many other activities. All of this requires Fiat currency.
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But the question is: Did they realize that there was going to be a crash? And if they did, did they reach that conclusion through technical and on-chain analysis or by… other methods?
Featured image by PatriestB at Pixabay | Charts by TradingView