After three years of dormancy, an Ethereum (ETH) whale wallet which participated in the Genesis Initial Coin Offering was activated on Aug. 14.
As Ether prices soared to a new 3-month high, the whale address transferred 145,000 ETH into multiple wallets. Transfers were made in batches of 5,000 ETH each transaction with a few more transfers of over 10,000 Ethereum. The wallet address has a balance currently of 0.107 Ethereum and the total value of the transferred Eth is more than $280 million.
Transactions in Ethereum ICO-era wallets Source: Etherscan
This was the second transfer of 145,000 ETH after the ICO. The first was in July 2019, when the whale wallet sent out 5,000 ETH via Bitfinex3 exchange. ETH trading was at $219 and the transaction value was just over a million.
Community reactions to the movement of such a large amount of ETH attracted a lot of attention. Many suggested that it could be a dump before the Merge (official transition of the current Proof of Work (PoW-based) blockchain to a Proof-of-Stake (PoS one). It is important to remember that transactions to unknown wallets are not exchanges.
Even if the whale decides to sell their 145,000 Ethereum, a $250m selling pressure isn’t enough to trigger a market dump. Some others think the whale may be trying to stake their ETH in order to become a validator for the PoS network and generate passive revenue.
Perhaps you could sell 5000eth in order to open 5000 future nosdes?
— Gary R (@bucko4aFREEusa), August 15, 2022
After a successful merger of the Goerli network to the Beacon chain (PoS chain activated 2020), Ethereum’s transition into a PoS-based network will take place on September 15. This is the last rehearsal before the official transition.
Related: Three cryptocurrencies that outperform the ETH price due to Ethereum’s Merge
The Merge in September 2022, which is the second-largest cryptocurrency in circulation, is considered to be one of the most important upgrades since 2015. After several delays and testnet integrations, the three-phase transition process started in 2020. It is now all set for the official PoS transition, which will take place in the third week in September.