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Dormant Ethereum Genesis Wallet Springs to Life, Shifting ETH to Coinbase

Published September 21, 2023 10:56 AM
Teuta Franjkovic
Published September 21, 2023 10:56 AM

Key Takeaways

  • An almost eight-year-inactive Ethereum ICO participant has sent 32.1 ETH to Coinbase.
  • Whales in Ethereum sold out their shares. Price impact remained negligible.
  • Grayscale applied for another ETF, maintaining the strong level of institutional interest in Ethereum.

After being dormant for eight years, an inactive Ethereum ICO participant deposited 32.1 ETH to Coinbase wallet.

This specific Ethereum address was a part of Ethereum Genesis and was initially been given 200 ETH. It looks to be connected to shemnon.eth (@shemnon).

The unexpected action has sparked attention and speculations among cryptocurrency enthusiasts, especially in light of Ethereum’s notable value growth since its launch.

Recent Signs Of Early ETH Whales Migrating

After years of inactivity, a number of Ethereum addresses related to the platform’s initial coin offering (ICO) have recently displayed activity.

Just recently, a major Ethereum whale transferred nearly $10M worth of ETH to Kraken while in July, an Ethereum ICO participant resumed activity after an eight-year break by depositing a sizable 61,216 ETH, or around $116 million, into the Kraken cryptocurrency market.

Another long-inactive wallet transferred 641 ETH and started staking in a second incident that coincided with Ethereum’s ninth birthday, amounting to a transaction value of almost $1.19 million.

Such transactions are notable not only for their quantity, but also for the large gains that these early Ethereum supporters have experienced.

Early adopters have seen exponential growth in their investments considering that the price of Ethereum during its initial coin offering (ICO) was around $0.31 per ETH and that it currently trades for around $1,623.

Potential Justifications For the Actions

There are concerns regarding the motivations behind these transfers due to the unexpected migration of substantial quantities of Ethereum from wallets that have been dormant for years.

Some have theorised that the original holders may be collecting profits or diversifying their assets in light of Ethereum’s spectacular price increase over the years.

Others could think that these changes are a result of Ethereum staking, which is becoming more and more popular and enables holders to receive incentives for helping to protect the network.

Effects on ETH

The price of ETH, which was trading at $1,630  at the time of writing, nevertheless remained largely constant despite these significant changes.

This steadiness demonstrated the altcoin’s adaptability as a market that took these sizable transactions in stride without seeing appreciable price changes.

ETH price movement
Credit: CoinMarketCap

However, these behaviours by ICO participants may cause FUD (Fear, Uncertainty, and Doubt) among bitcoin enthusiasts. Concerns about market manipulation or negative sentiment might arise when investors carry on large transactions on exchanges.

Institutional Enthusiasm Remains High

It’s interesting to see that institutional interest in Ethereum has not decreased. A well-known cryptocurrency investing company called Grayscale recently applied for a new Ethereum futures exchange-traded fund (ETF).

Grayscale had previously filed a registration for the same investment vehicle under different regulatory legislation; therefore, this action startled many in the cryptocurrency community.

The company’s latest filing under the Securities Act of 1933 could be viewed as a backup plan in the event that the SEC rejects its initial proposal for an ETH futures ETF.

If no regulatory authorities object, the initial ETF proposal should go live in October. Grayscale has shown significant belief in the long-term potential of cryptocurrency, despite short-term market changes, by taking the initiative to develop an Ethereum-focused ETF.

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