The Ethereum Foundation, the core developer of Ethereum (ETH), made waves in the cryptocurrency market this Friday, August 23. As cryptocurrencies surged, its treasury account sent 35,000 ETH—worth nearly $100 million—to Kraken, a leading crypto exchange.
With the on-chain activity, the Ethereum community demanded an explanation and a disclosure of what could be a massive sell-off. On that note, Aya Miyaguchi disclosed that the Foundation has a $100 million yearly budget mainly to pay for grants and the team’s salaries.
Notably, Miyaguchi explained the Ethereum Foundation came from a prolonged period without doing any treasury management. Moreover, she highlighted that the Foundation will not sell all at once but is preparing for gradual sales on Kraken.
ETH (#2) to XRP (#7) ranked by market cap. Source: Finbold
As of this writing, Ethereum trades at $2,776, and the Foundation’s yearly budget equals 0.03% of all 120.3 million ETH in the circulating supply. Therefore, despite creating some selling pressure, these activities will hardly impact the native token’s price if its demand continues growing.
Nevertheless, investors should remain cautious and carefully monitor whale activities like the Ethereum Foundation.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
