Exactly 61,216.6 ETH worth over $116 million landed on the top US-based crypto exchange Kraken on July 18, raising concerns of a possible sell-off among market participants.
Chinese reporter Colin Wu disclosed this development on Tuesday, revealing that the voluminous transfer was executed by an address that took part in Ethereum’s Initial Coin Offering (ICO) conducted in 2015.
An Ethereum ICO participant address transferred 61216.6 ETH (worth $116 million) to Kraken. This address received 61216.6 ETH from the Ethereum genesis block on July 30, 2015, worth $19038 at the time (ICO price $0.311). According to @EmberCN,https://t.co/0aCR8tBi5k
— Wu Blockchain (@WuBlockchain) July 19, 2023
Whale Alert, a leading blockchain analytic platform also corroborated the update in a different tweet. It wrote, “A dormant pre-mine address containing 61,216 ETH (116,396,127 USD) has just been activated after 8.0 years!”
According to data from Etherscan, this address, which transferred 62,216 ETH to a Kraken wallet on Tuesday, has been dormant for eight years. Before the heavy transfer, the unknown user executed a test transfer of 0.05 ETH to the Kraken trading platform.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Findings further show that the recently moved pre-mined 61,216.6 Ether tokens to Kraken were valued at about $20 million when the ICO participant received the tokens from the Ethereum genesis block on July 30, 2023. Notably, ETH was trading at $300-$400 during the pre-mine period.
With many developments going on around Ethereum and the project’s huge adoption rate, the crypto asset is trading above $1,900 at the time of writing.
Accordingly, the 61,216.6 ETH worth about $20 million in 2015 is now worth more than $116 million at press time. This goes further to buttress the importance of long-term holding of valuable crypto assets. Recall that a Shiba Inu investor who maintained a long-term perspective turned $17 into $1.5 million.
Impact on Ethereum (ETH) Price
This recent development has aroused several speculations in the community, with many market participants asserting that the Ethereum Initial Coin Offering user would dump the tokens in the market for profits.
On the other hand, another community member claimed the tokens would be used for staking. Amid the speculations, the ETH price seems to be gaining stability around $1,909 while showing signs of rising further.