Ethereum Foundation Calms Bearish Concerns, Explain Reason For $94 Million “Selloff”
The post Ethereum Foundation Calms Bearish Concerns, Explain Reason For $94 Million “Selloff” appeared on BitcoinEthereumNews.com.
A member of the Ethereum Foundation has recently addressed investors’ concerns following a massive ETH transfer by the non-profit organization on Friday. This development is particularly important as this transaction sparked bearish talks in the crypto community especially due to EF’s association with the Ethereum network. $94 Million ETH Transfer Not A Selloff – Ethereum Foundation On Friday, the Ethereum Foundation deposited 35,000 ETH, valued at $93.8 million, on the Kraken exchange leading to much speculation among ETH. These concerns stemmed from the bearish nature of such massive transactions as well as the role of the EF in the Ethereum ecosystem. Described as a non-profit organization, the EF claims a critical role in sponsoring technological development of the Ethereum network. Therefore, a sudden ETH offload of this size is bound to draw attention from investors and general market enthusiasts. In an X post on Saturday, Aya Miyaguchi, Executive Director of the Ethereum Foundation, explained the recent transaction stating it was not “equal to a sale” but rather a process in managing the organization’s treasury. Miyaguchi claims the ETH deposited on Kraken was swapped for fiat to settle certain obligations. The EF director also attributed the massive ETH withdrawal to a previous constraint on treasury activities due to regulations-related issues. Miyaguchi said: EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any treasury activities due to the regulatory complications, and we were not able to share the plan in advance. Prior to this 35,000 ETH transfer to Kraken, the EF had been offloading significant quantities of ETH in 2024, which stood at 2,516 ETH for…
Filed under: News - @ August 25, 2024 10:02 am