Does Ethereum co-founder’s $75m Kraken deposit mark a top?

Ethereum co-founder Jeffrey Wilcke transferred $75.2 million worth of Ether to Kraken, increasing speculation about a potential market correction.

On-chain data showed that Wilcke sent 20,000 Ether (ETH) to California-based centralized crypto exchange Kraken. The reason for Wilcke’s move was unknown, but foreign exchange deposits often signaled a sales plan.

Community members highlighted that Wilcke’s past transactions sometimes occurred before price drops in Ethereum.

For example, on January 6, 2021, the price of Ethereum dropped after Wilcke deposited 15,000 ETH. Similarly, on February 11 and February 14, 2024, movements of 4,300 ETH and 10,000 ETH, respectively, were followed by price declines. Despite the latest transaction, Wilcke still has 106,006 ETH worth over $384 million, according to LookOnChain.

Ethereum leaders and organizations selling ETH or depositing foreign currency have always attracted public ire. Earlier this year, the foundation sold 4,266 ETH worth over $12 million, sparking backlash from users who were accused of profiting from the reserves.

Users criticized the non-profit organization for allegedly profiting from Ether reserves. ETH co-creator Vitalik Buterin announced that the foundation is liquidating some of its assets to fund startups and fund its operations.

Indeed, the foundation’s annual report revealed that most of its money was allocated to support the Ether ecosystem or reward projects focused on developing the largest decentralized finance blockchain.

The price of Ether rose along with other cryptocurrencies following the November 6 US general elections. ETH rose to $3,550 as the total crypto market rose to $3.4 trillion. The token was nearly 28% below its previous all-time high of $4,878.

24-hour ETH price chart – November 28 | Source: crypto.news