A member of the Ethereum Foundation (EF) recently addressed investor concerns after the nonprofit transferred a large amount of ETH on Friday. The development is particularly significant as the transaction has sparked pessimistic discussions in the cryptocurrency community, especially given EF’s ties to the Ethereum network.
Ethereum Foundation Says It Will Not Sell ETH
On Friday, the Ethereum Foundation transferred 35,000 ETH, worth $93.8 million, to the Kraken exchange, leading to much speculation in the ETH community. These concerns stem from the pessimistic nature of such large transactions as well as EF's role in the Ethereum ecosystem.
Described as a non-profit organization, EF claims to play a vital role in funding the technological development of the Ethereum network. Therefore, a sudden ETH sell-off of this scale is sure to attract the attention of investors and general market enthusiasts.
In a post on X on Saturday, Aya Miyaguchi, CEO of the Ethereum Foundation, explained the recent transaction, stating that it was not a sell-off but rather a treasury management process for the organization. Miyaguchi stated that the ETH sent to Kraken was swapped into fiat to settle certain obligations. The EF director also attributed the large ETH withdrawal to previous restrictions on the foundation's operations due to regulatory concerns.
“EF has a budget of about $100 million a year, mostly made up of grants and salaries, and some recipients only accept fiat. This year, there was a long period when we were advised not to do any treasury operations due to regulatory complications and we were unable to share plans in advance.”
Before transferring this 35,000 ETH to Kraken, EF sold 2,516 ETH for $7.4 million in DAI. Miyaguchi stated that the Ethereum Foundation will continue to sell off ETH in a “planned and gradual” manner.
ETH is currently trading at $2,753 with a slight decrease of 0.6% on the day. The second-largest cryptocurrency is currently stuck in a tight range between $2,500 and $2,800. If ETH bulls can regain control of the market, the altcoin could break out of the consolidation range with the next major resistance level at $3,560. However, an opposite scenario could result in massive selling pressure that could send Ethereum price down to as low as $2,100.
Source: TradingView
https://tapchibitcoin.io/ethereum-foundation-neu-ly-do-chuyen-35-000-eth-den-kraken.html
