ethereum-based decentralized computing platform Golem has sent over $100 million worth of eth to centralized exchanges like Binance, Coinbase, and Bitfinex in recent weeks.
This has become a cause for concern for cryptocurrency markets already affected by large bitcoin sell-offs and the prospect of more to come.
Golem is one of the earliest ethereum initial coin offerings (ICOs), raising around $8 million, or $820,000 worth of eth, during the ICO boom of 2016.
Another entity flooding the markets?
“First governments, now the old ICOs, who’s next?” twitter.com/nansen_ai/status/1810319912382128638″ target=”_blank” rel=”noopener” data-wpel-link=”external”>commented blockchain analytics platform Nansen, which reported eth transfers on July 8.
Golem still holds 126,034 eth worth approximately $387 million, according to your wallet address.
ethereum proponent Anthony Sassano compared it to the blockchain platform and once labeled EOS the “ethereum killer,” raising $4 billion in an ICO before converting to bitcoin and “abandoning the project.”
<blockquote class="twitter-tweet”>
Yeh Golem dumping more eth sucks, but nothing beats it https://t.co/ZRe2h9CU8A raise $4 billion in eth to “build EOS” in a year-long ICO, exchange it all for btc, abandon EOS, and then get away with paying the SEC a $24 million fine.
Masterclass on scams.
— sassal.eth/acc (@sassal0x) twitter.com/sassal0x/status/1810276421295902984?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 8, 2024
On July 9, ConsenSys product manager Jimmy Ragosa called Golem’s behavior “incredibly suspicious” before suggesting that they may be moving the eth to centralized exchanges to test staking rather than with the intention of selling.
He shared screenshots of Golem's social media channels that were also fake. The team claimed they were testing staking, but provided a link to a eth-staking-tests/” target=”_blank” rel=”noopener” data-wpel-link=”external”>blog entry indicating that they were staking alone.
<blockquote class="twitter-tweet”>
I'll leave off pointing out Golem's incredibly suspicious behavior for now.
Deep down, I know they'll release a reassuring report in August saying, “We actually tested staking via CEX and didn't sell.”
But damn, how easy would it be to be transparent from the start?
— Jrag.eth (@JimmyRagosa) twitter.com/JimmyRagosa/status/1810569297225306522?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 9, 2024
On July 8, the Golem Project twitter.com/golemproject/status/1810319141783703995″ target=”_blank” rel=”noopener” data-wpel-link=”external”>aware on day x to address recent activity in your treasury.
He stated that the development of the Golem network and its ecosystem is his number one priority, adding: “We are an original ethereum project and as such we want to contribute to the ethereum ecosystem. Our intention is to solo stake a significant portion of eth in our treasury.”
Despite pivoting toward artificial intelligence, Golem’s native token, GLM (formerly GNT), has fallen 76% from its all-time high of $1.32 in 2018.
eth Price Reaction
There has been no notable reaction in ethereum markets to the potential selling pressure if Golem decides to offload the assets.
eth was trading flat on the day at $3,080 following an intraday drop to $2,916 on July 8. However, ethereum has been in a downtrend over the past month, losing more than 10% over the past week.
It remains to be seen whether the project will add to the pressure that cryptocurrency markets have been under recently as large entities dump large amounts of digital assets.
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