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The ethereum Foundation, the nonprofit organization dedicated to supporting ethereum (eth) and related technologies, announced that it had sold 1,700 eth for USD Coin (USDC).
According to a report from October 9 cheep According to blockchain data service Scopescan, the ethereum Foundation just sold 1,700 eth for approximately $2.76 million worth of the USDC stablecoin. Further data from Arkham Intelligence shows that the exchange was a Uniswap transaction.
At press time, CoinMarketCap ethereum/” target=”_blank” rel=”noopener”>data shows that the price of ethereum fell by 0.56% in the last hour, 3.8% in the last 24 hours, and 6.66% in the last seven days. While a clear causal link cannot be established, the transaction was followed by a continuation of ethereum‘s recent price drop.
The transaction was met with alarm by some Twitter commentators and has been described as a bearish signal. Upon inspection, it is difficult to think of a non-bearish reason why the ethereum Foundation would decide to sell ethereum for a stablecoin.
Despite all this, the official reasons may be much more innocent than anticipating a new drop in the price of ethereum. The organization may have agreed to pay in USDC for goods or services, or may have another reason for needing the stablecoin.
The unexplained transaction was followed by the transfer of $3.23 million of USDC to Safe, formerly known as Gnosis Safe Protocol. This is a decentralized custody service and asset management platform built on ethereum.
