Wallets related to Ethereum Foundation have sold over 6,000 ETH in recent days; however, Ethereum Foundation confirms that they do not operate these transactions.
This wallet has converted Ethereum to DAI with a total value of over 28 million USD in the last 2 days. Although there are many addresses related to Ethereum Foundation, most do not operate directly under the management of this organization.
MAIN CONTENT
Wallet related to Ethereum Foundation sold over 6,000 ETH worth more than 28 million USD.
Ethereum Foundation asserts that the transactions are not operated by them.
The percentage of ETH belonging to Ethereum Foundation is currently below 0.3% of the total supply.
Is this wallet directly managed by Ethereum Foundation?
According to Hsiao-Wei Wang, co-CEO of Ethereum Foundation, the address selling ETH is said to be related to the Foundation but is not operated by the organization.
This statement was made to clarify information as observations show this wallet performs a large number of significant transactions. Ethereum Foundation has never directly controlled all related addresses, causing misunderstandings about the origin of transactions.
Cryptocurrency addresses labeled as Ethereum Foundation may be cold wallets or wallets operated by other individuals but are still linked through transaction history or prior allocation mechanisms.
Why are there so many addresses related to Ethereum Foundation?
Ethereum Foundation was allocated about 9% of the ETH supply during the ICO in 2014, stored in various addresses.
After more than 10 years, this number of addresses still exists, but the total ETH belonging to the Foundation has decreased to below 0.3% of the total supply due to distribution, transfer, or use for development projects. This explains why many wallets can be labeled as Ethereum Foundation but are not officially managed centrally.
Storing ETH in multiple addresses is also a security measure, dispersing risk of important assets in the cryptocurrency industry.
"ETH transactions from addresses related to Ethereum Foundation recently are not operated by us."
Hsiao-Wei Wang, Co-CEO of Ethereum Foundation, 14/08/2024
What impact does the sale of thousands of ETH have on the market?
The sale of 6,194 ETH equivalent to 28.36 million USD to stablecoin DAI contributes to increasing DAI liquidity and may have a slight impact on ETH price volatility in the short term.
However, with this volume compared to the total supply and the scale of the global cryptocurrency market, significant impacts usually do not occur, especially when transactions occur in small batches and are converted to stablecoins to mitigate volatility risk.
The cryptocurrency market frequently records large transactions from whales or institutions, which is normal and does not necessarily reflect the overall ETH price trend.
Frequently Asked Questions
Are any wallets related to Ethereum Foundation managed by them?
No, not all related addresses are directly operated by Ethereum Foundation. Ethereum Foundation only controls a small part of those addresses.
What percentage of the total ETH supply does Ethereum Foundation currently own?
Currently, Ethereum Foundation holds less than 0.3% of the total ETH supply, a sharp decline from 9% during the ICO in 2014.
Does the sale of ETH to DAI significantly affect ETH prices?
With transaction volumes of several thousand ETH, the impact is usually only short-term and limited in a broad and highly volatile market like the current one.
How to distinguish between real and fake Ethereum Foundation wallets?
It is necessary to rely on official announcements, on-chain analysis, and reliable technical information, rather than just names or wallet labels.
Can Ethereum Foundation sell ETH in bulk?
Ethereum Foundation has a strict asset management process; bulk sales can impact the market and are not conducted spontaneously.
Source: https://tintucbitcoin.com/ethereum-giam-khi-ban-6-194-eth/
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