Does Ethereum Co-Founder's $75 Million Kraken Deposit Mark a Ceiling?

ethereum co-founder Jeffrey Wilcke transferred $75.2 million worth of Ether to Kraken, sparking speculation about a possible market correction.

Chain data <a target="_blank" href="https://x.com/lookonchain/status/1862114524851273824″ target=”_blank” rel=”nofollow”>presented that Wilcke sent 20,000 Ether (eth) to the centralized crypto exchange Kraken, located in California. The reason for Wilcke's decision is unknown, but an exchange deposit usually indicates a plan to sell.

Community members highlighted that Wilcke's past transactions have sometimes preceded price drops on ethereum.

For example, on January 6, 2021, the price of ethereum fell after Wilcke deposited 15,000 eth. Similarly, on February 11 and 14, 2024, its moves of 4,300 eth and 10,000 eth, respectively, were followed by price drops. Despite the recent transaction, Wilcke still owns 106,006 eth, valued at more than $384 million, according to LookOnChain.

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ethereum leaders and organizations selling eth or making exchange deposits have always drawn the public's ire. Earlier this year, the foundation sold 4,266 eth, worth more than $12 million, sparking backlash from users who accused it of profiting from reserves.

Users criticized the nonprofit for allegedly profiting from their Ether reserves. eth co-creator Vitalik Buterin clarified that the foundation liquidates parts of its holdings to fund initiatives and finance its operations.

In fact, the foundation's annual report revealed that most of its cash went to supporting the Ether ecosystem or rewarding projects focused on advancing the largest decentralized financial blockchain.

The price of Ether saw a rally along with other cryptocurrencies after the November 6 general election in the United States. As the total crypto market reached $3.4 trillion, eth rose to $3,550. The token was around 28% below its previous all-time high of $4,878.