As it turns out, the Ethereum Foundation employs incredible traders. Once again, they managed to cash out the most. On November 16, ETH was worth an all-time high of $ 4891. The next day, the Ethereum Foundation sent 20.000 ETH to Kraken and sold them. Is that suspicious? Not per se, but this is the second time they've done the same magic move.
A professional trader who goes by the name of Edward Morra on Twitter was the first to notice the trade. “Friendly reminder that the ETH foundation grossed at the top (again). ETH has dropped 40 +% since then, ”he said. Morra also provided a chart showing the sharp drop in the price of ETH since the sale.
To add insult to injury, the Ethereum Foundation only paid $ 20 in gas taxes. This may be the most impressive feat of all.
At the time of writing, the Ethereum Foundation wallet holds 353.318 ETH, which is approximately $ 835 per quotation current.
What do we know about the organization's previous sell-off?
Returning to Morra, his Twitter followers told him that this information was of no use at this point in the game. The trader surprised the world and pulled an ace out of his sleeve. As it turned out, Morra tweeted about the trade the moment it happened. Not only that, he warned them: "They collected 35k ETH on May 17 this year, marked on the chart".
On May 17th, the price of ETH was close to its previous high. And after the Ethereum Foundation sold, ETH has been on a downtrend for months and months. Is this a coincidence? Does the foundation employ large traders? Or, is there something else in this story? Did they dump retail ETH holders? Did the Ethereum Foundation know anything the rest of the world didn't know?
At the time of the first sell-off, reporter Colin Wu highlighted the trade and said, “The Ethereum Foundation transferred 35.000 Eth to the Kraken Exchange on May 17th. Vitalik said the bubbles could have ended as early as May 20 ”. Analyzing the move, Wu said: "This is a normal operation, but it also means that the Foundation has thought the bear market is coming."
The fee for this transaction was 0,00240474 ETH, or $ 5,66 at the time of writing. Wow.
What is the Ethereum Foundation anyway?
According to the official Ethereum website:
“EF is not a corporation, or even a traditional non-profit. Their role is not to control or guide Ethereum, nor are they the only organization funding the critical development of Ethereum-related technologies. EF is a part of a much larger ecosystem ”.
The Ethereum Foundation distributes funds to developers through the Ecosystem Support Program and Fellowship Program, organizes Devcom, and more. To do all of this, they definitely need the Fiat currency in some way. The exchange makes sense from this point of view.
The question, though, is: did they know a collapse was coming? And if they did, did they come to this conclusion through technical and chain analysis or through… other methods?