An Ethereum ICO whale, who had been inactive for two years, has made a significant move by transferring 10,000 Ethereum (ETH) to Kraken. This move comes amid the ETH price rally after the Federal Reserve announced a 50-basis-point rate cut on Wednesday. Hence, it raises concerns of a halt in the current surge as sell pressure kicks in owing to profit-taking prominent whales.
Ethereum ICO Participant Rakes In Major Profit
The whale transferred Ethereum worth approximately $24.37 million to the Kraken exchange today, according to blockchain tracker Lookonchain. The transaction, which took place a few hours ago, marks a major shift as this whale has held onto a large portion of ETH since its inception.
This whale was part of Ethereum’s initial coin offering (ICO) and originally received 50,000 ETH during the Genesis block event. Back then, the total cost for their allocation was a mere $15,500. With the current price of ETH surging above $2,430, their holdings are now worth a staggering $121.85 million.
An #Ethereum ICO participant deposited 10,000 $ETH($24.37M) into #Kraken 15 minutes ago after being dormant for 2 years!
The participant received 50,000 $ETH(ICO cost was $15.5K, now worth $121.85M) at #GENESIS.https://t.co/cuEosgIONq pic.twitter.com/PK4KePNFvu
— Lookonchain (@lookonchain) September 19, 2024
The whale’s move is coinciding with a surge in ETH price, driven by broader market conditions. Following the U.S. Federal Reserve’s decision on Wednesday, September 18, to reduce interest rates by 50 basis points, Ethereum saw a rapid increase in value, jumping by over 5% in less than 24 hours. This rate cut, the first since 2020, is expected to lower borrowing costs across various sectors, spurring a “risk-on” sentiment that has benefited assets like Ethereum.
ETH Market Sentiment
While the ICO whale’s transfer has garnered attention, it follows a recent series of large ETH movements involving the WazirX hacker. On September 19, a $12 million ETH transfer was traced to a new wallet address (0x46b9…).
This transfer follows a laundering pattern that was first observed days ago when 5,000 ETH, valued at $11.6 million, was moved to another address. According to Cyvers Alert, a blockchain security firm, the hacker has been steadily moving funds, with $241,213 deposited into Tornado Cash today.
At the time of writing, ETH price traded at $2,432.99, up by 5.59% on Thursday. The timing of these movements, combined with the rate-driven ETH price surge, has raised concerns about the market’s stability. The sudden influx of large volumes of ETH onto exchanges like Kraken could potentially lead to increased selling pressure.
Over 547,600 $ETH have been sent to #crypto exchanges in the last three weeks, worth over $1.26 billion! pic.twitter.com/mTQeXdnTtr
— Ali (@ali_charts) September 18, 2024
Earlier, investors offloaded 547,600 ETH, valued at a whopping $1.26 trillion, to crypto exchanges in the three weeks ahead of the FOMC meeting. Hence, the latest movements could add to this sell pressure, potentially ceasing the post-FOMC rally.
Also Read: WazirX Hacker Begins Laundering $11.6M ETH via Tornado Cash
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