The Ethereum Foundation (EF) recently ignited speculation of a massive liquidation after it transferred $654 million worth of ETH to an address historically associated with token sales.
I. The On-Chain Event and Speculation
The basis of the rumor is a large, public on-chain movement tracked by analytics firms like Arkham Intelligence:
The Transfer: The Ethereum Foundation moved $654 million in ETH to a new wallet.
Evidence of Sale: The destination wallet has a history of making significant transfers to specific entities, including Kraken Deposit, SharpLink Gaming, and a Multi-sig wallet used for selling ETH in the past.
Context: While the EF has made smaller ETH sales (under $10 million) in the past month to fund research and development, this transfer is significantly larger (16 times the size of a previous major sale), fueling market concern over a potential $654 million token dump.
II. Speculated Purpose and Foundation's Response
While the transfer has not yet resulted in a sale, community speculation has centered on a possible payout to veteran developers:
Underpaid Developers: The transfer occurred shortly after the resignation of veteran developer Péter Szilágyi, who claimed that the EF severely underpaid its core developers. This concern was echoed by a Co-Executive Director at the Ethereum Foundation, who publicly responded by acknowledging that veteran builders were "underpaid for the value that you brought."
The Theory: Some analysts speculate that a portion of the $654 million transfer may be designated to properly compensate these long-time builders, offering a "nest egg" payout.
Official Clarification: At the time of the report, there was no concrete official confirmation from the Ethereum Foundation regarding the specific purpose of the $654 million transfer or whether a sale was imminent. The market remains stable but awaits confirmation of the Foundation's plans.
Conclusion
The transfer of $654 million in ETH by the Ethereum Foundation has created significant uncertainty, as the movement points to a potential massive sale via a wallet previously used for liquidations. While there is speculation that the funds could be used to compensate underpaid core developers—a theory supported by recent comments from Foundation leadership—the lack of an official statement means the crypto community is closely watching the destination wallet for any market-moving liquidation.
Disclaimer
This article is for informational purposes only and is based on third-party on-chain analysis and market rumors. The information should not be considered financial or investment advice. The transfer of funds does not confirm a sale, and the Ethereum Foundation has not officially clarified the purpose of the transaction. The cryptocurrency market is highly volatile, and all investment decisions should be preceded by thorough personal research (DYOR) and consultation with a qualified financial advisor.
