Argot Collective sold over 2,400 ETH for more than 7 million USDC within just over a day, reflecting the asset conversion from Ethereum to stablecoins to ensure liquidity.
With over 7,000 ETH received from the Ethereum Foundation, the non-profit development organization Argot Collective is executing partial liquidity to optimize fund management and reduce price volatility risk in the cryptocurrency market.
MAIN CONTENT
Argot Collective received 7,000 ETH from the Ethereum Foundation to support development activities.
Sold 2,416.6 ETH for 7.106 million USDC at an average price of 2,941 USD/ETH.
Selling ETH for stablecoins helps maintain liquidity and reduce risk for institutional funds.
What is Argot Collective and what role does it play in the Ethereum ecosystem?
Argot Collective is a non-profit development organization, funded by the Ethereum Foundation to promote technology projects in the Ethereum ecosystem.
According to a report from Ember, a reputable on-chain analysis unit, Argot Collective manages over 7,000 ETH, the main funding source provided by the Ethereum Foundation to support research and development activities.
How has Argot Collective conducted Ethereum asset transactions recently?
From July 11 to 12, 2024, Argot Collective sold a total of 2,416.6 ETH and received over 7 million USDC, which is the leading stablecoin to maintain stable value.
The average selling price reached approximately 2,941 USD per ETH, reflecting the strategy of converting assets to stablecoins to minimize price volatility and ensure operational liquidity.
I assess this as a reasonable move to ensure stable operating capital in the context of a highly volatile cryptocurrency market.
David Li, CEO of on-chain analysis firm Ember, 12/07/2024
Why did Argot Collective choose to sell ETH for stable USDC?
Converting ETH to USDC helps this organization preserve fund value amidst strong fluctuations in the cryptocurrency market.
As a result, Argot Collective can focus on project development without financial pressure from ETH price fluctuations in the market.
What is the impact of this ETH selling activity on the cryptocurrency market and the Ethereum community?
The ETH selling transaction, while not too large compared to market liquidity, reflects the trend of development organizations prioritizing holding assets in stablecoin form to increase stability.
This may create slight pressure on ETH prices in the short term but simultaneously supports the growth of Ethereum projects with more stable funding.
Comparison table between the amount of ETH received and the amount of ETH sold by Argot Collective
CONTENT Quantity of ETH Value (USD) Notes ETH received from the Ethereum Foundation 7,000 ETH – Operating capital ETH sold in 1 day 2,416.6 ETH 7.106 million USD Exchanged for USDC Average selling price of ETH – 2,941 USD/ETH –
Frequently Asked Questions
Where does Argot Collective receive funding from? Argot Collective received 7,000 ETH from the Ethereum Foundation to support project development activities. What impact does selling ETH for USDC have on the fund? The conversion helps preserve value, increase stability, and reduce price volatility risk. What is the average selling price of ETH that Argot Collective achieved? The average selling price is approximately 2,941 USD per ETH. Does selling ETH have a significant impact on the market? The amount of ETH sold is not too large compared to the total market size, only causing a slight temporary impact. Why do development organizations need to convert assets to stablecoins? Stablecoins help maintain stable liquidity and minimize price volatility risk in financial activities.
Source: https://tintucbitcoin.com/ethereum-foundation-chuyen-1-2067-eth-cho-argot-collective/
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