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- 1 One of the ETH whales was reported transferring a significant amount of crypto assets to Kraken.
- 2 This can be part of a broader strategy or there can be other things at play by the whale.
Recently, a notable activity took place over the second biggest cryptocurrency blockchain network Ethereum (ETH). One of the biggest ETH whales was seen transferring a significant amount of crypto assets to the crypto exchange platform Kraken. The identity of the crypto holder and reason for moving the assets is yet unknown, however, the concerns raised if nearly $10 Million worth of ETH is about to be sold off or staked.
The whale is well known for being among the earliest participants of Ethereum’s initial coin offering (ICO). The ETH holder was also among the initial adopters and supporters of the Ethereum blockchain.
Lookonchain data suggests that the ETH whale moved 6,000 Ethereum which is worth around $9.96 Million given the current price, to Kraken. However, the identity of the person behind the wallet is unknown.
The feature of anonymity provided over blockchain networks acts in favor of maintaining privacy, but it also restricts getting the identity of the entity or person behind the crypto wallet.
The available on-chain data about the cryptocurrency wallet shows that during the initial days of Ethereum, the wallet received 254,908 ETH after crowdfunding. During the time of receiving crypto assets in 2014, it was trading at $40 per coin.
Given the current price, the whole stash of Ethereum belonging to the said whale crypto wallet is valued at about $466 Million currently.
Is Moved Ethereum on Sale or At Stake?
The movement of Ethereum-like crypto assets in such a hefty volume is unusual. So, whenever any such thing happens, the potential reasons that emerge are either related to the sale of crypto assets or to stake it for making it generate regular yield.
Whale transfers to a cryptocurrency exchange are often viewed as a bearish signal because they facilitate a more convenient avenue for token holders to liquidate their assets. In general, large-scale cryptocurrency investors, known as whales, have the capacity to influence the market significantly due to the substantial volume of digital assets they hold.
When whales move their holdings to exchanges, it can signify an intention to sell, potentially putting downward pressure on token prices. This dynamic underscores the role of whale activity as a key factor in cryptocurrency market sentiment and price movements.
Indeed, the trading decisions of cryptocurrency whales can wield considerable influence over prices, introducing an element of heightened volatility into the market. Consequently, the recent deposit of assets to the Kraken exchange could be interpreted as an indication that the whale is contemplating a sale, possibly to capitalize on profit-taking.
The potential move underscores the importance of monitoring whale activity as it can offer valuable insights into the market’s direction and serve as a gauge of investor sentiment and intentions.
On a more optimistic note, the whale’s transfer of coins to Kraken might be part of a broader strategy. It’s possible that they are using Kraken as an intermediary step before transferring their assets to other platforms like Rocket Pool or Lido Finance for staking.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
