Ethereum Foundation has once again made a sale that coincided with the market peak. The foundation has been known to make sales that have been perfectly timed to the market. This time around, the market crash occurred about two days after and has since caused ETH to lose 40% of its market value. Speculations in the space are that the foundation is manipulating the peaks to its benefit.
Ethereum Foundation Sells 20K ETH
The most recent sale by the Ethereum Foundation came out to a total of $97 million. The foundation had moved 20k ETH out of its dev account known as EthDev. Following the sale, the price of ETH crashed by more than 40%. This was a significant amount taken out of the dev wallet, presumably to fund the activities of the foundation. The foundation had made a sale on the Kraken crypto exchange, where it had transferred the coins.
Related Reading | Why Ethereum Will Continue To Be A Market Leader, Coinbase Analysts
A Twitter user known as Edward Morra, who has been tracking the transactions of EthDev exposed the sale to the public. It matches the movement of funds from the wallet in the past when the price of ethereal had run towards a new high. Morra highlighted that the foundation’s analysts had managed to call the top of the market and had sold the foundation’s coins accordingly.
Friendly reminder that ETH foundation cashed out at the top (again). ETH down 40+% since then pic.twitter.com/Bp80hEDvK0
— Edward Morra (@edwardmorra_btc) January 21, 2022
Selling With The Peak
This is not the first time that the Ethereum Foundation has made a significant sale that has coincided with the market peak. Twitter user Edward Morra also points out that the foundation has managed to time the last two peaks. One happened during the market rally that ended in May and the other also coincided with the market rally that ended in November.
ETH begins recovery trend | Source: ETHUSD on TradingView.com
In May of 2021, the Ethereum Foundation had sold a total of 35K ETH from its dev wallet. This sale aligned with the peak of the market at that time, with the market crash happening not long after.
Casual 20k ETH cashout by EthDev, sent to Kraken:https://t.co/w6AbdeW2AJ
They cashed out 35k ETH on 17th of May this year, marked on the chart ? pic.twitter.com/sTbUwHSzD4
— Edward Morra (@edwardmorra_btc) November 11, 2021
Related Reading | Solana’s Network Blackout Puts It In Dire Straits Among Competitors
This has led to speculations that the foundation is timing the market and maybe they know something that the general public does not. Could they know that a market crash was coming and hence sold before it happened? This remains to be seen.
As of this time, the Ethereum dev wallet still has a significant number of ETH left, all of them premined. There is a total of 353,318 ETH left in the wallet, which is worth over $800 million at the time of writing.
Featured image from Trustnodes, chart from TradingView.com