Leading on-chain analytics provider Lookonchain reported that a long-standing investor in Ethereum (ETH), holding 61,216 ETH worth $116 million, recently transferred their assets to the Kraken exchange after years of inactivity. This massive transfer has caused panic in the ETH market.
Paid $0.31 Per ETH
The enormous transfer identified by Lookonchain was executed by an Ethereum whale who woke up after 8 years and purchased ETH at a significantly lower price of $0.31 per ETH during the ICO period.
Ethereum’s ICO, held in 2014, was a fundraising event to support the development of the Ethereum platform. It was one of the first significant ICO examples in the cryptocurrency world. Participants in the ICO were able to purchase the native asset of the Ethereum network, ETH, or Ether, at approximately $0.31 per unit. With Ethereum’s current market price at $1,912, it is evident that these investors have made substantial profits from each ETH held.
However, the sudden movement of dormant wallet addresses after years of inactivity can have various reasons, such as the desire to take advantage of price increases, liquidity needs, or changes in investment strategies.
Current State of ETH
The anticipated transfer of 61,216 ETH worth $116 million by the Ethereum investor from the ICO period to the Kraken exchange is expected to create volatility. Market observations, based on past experiences, warn ETH investors about the significant impact of actions taken by these dormant wallet addresses on market dynamics and investor sentiment.
The movement caused by the participant in Ethereum’s ICO occurred during a period when Ethereum had a market value of $229 billion and a daily trading volume of $9.8 billion. The flagship altcoin is currently trading at $1,912 on major spot exchanges, following a modest price increase of 0.4%.
