As a seasoned analyst with years of experience navigating the crypto market’s volatile tides, I find myself intrigued by this recent development involving the dormant Ethereum wallets. The initial panic among investors, fueled by the staggering figures and association with a massive scam like PlusToken, was understandable. However, upon closer examination of the facts, it seems that the selling pressure might not be as dire as initially perceived.
As a seasoned cryptocurrency investor and analyst with over a decade of experience in the digital asset space, I have witnessed my fair share of market volatility, scams, and unexpected events. The recent news that hundreds of Ethereum wallets that had been dormant for over three years are suddenly moving large amounts of ETH is a development that immediately raises red flags for me.
Investors had concerns about another significant sell-off potentially impacting the market’s rebound. Yet, it was later discovered that the initially estimated quantity of Ethereum supposedly being transferred was actually quite a bit smaller.
3-Year-Old Dormant Ethereum Wallets Awaken
According to on-chain tracking company Lookonchain, a significant number of Ethereum wallets began transferring large amounts of ETH today. In a since-removed post, they hypothesized that these wallets, which had been inactive for approximately 3 and a half years, may have transferred close to 700,000 ETH.
Lookonchain traced the funds to an address associated with the PlusToken Ponzi Scheme. In 2020, Chinese authorities confiscated approximately 833,083 ETH, currently valued at around $2.11 billion, as part of their efforts to dismantle the fraudulent cryptocurrency trading platform.
As a seasoned cryptocurrency investor with years of experience in this ever-evolving market, I find myself intrigued by this recent development involving the ETH wallets that have been awakened after a long slumber. The label on one such wallet, “Plus Token Ponzi 2,” immediately raises red flags for me, given my personal encounters with similar schemes in the past.
The news ignited discussions among cryptocurrency investors, as they expressed concerns that the Chinese government might take actions similar to those of the German and U.S. governments. This potential action could lead to increased selling, creating additional stress on Ethereum and the market that was already in recovery.
As a researcher, I’ve recently discovered that some details regarding the amount of Ethereum (ETH) reportedly moved were inaccurate. Consequently, this led the on-chain data company to retract their initial findings and revise their report accordingly.
Is ETH’s Selling Pressure Over?
As per findings by data analyst EmberCN, a considerable reduction in Ethereum that’s waiting to be offloaded has been observed. The analyst elaborated that around 789,534 Ether were deposited onto crypto exchange Binance three years ago, which later collapsed. These tokens were shifted to the now-defunct exchange between June and September 2021 through various Ethereum addresses.
According to the findings of the report, it appears that the vast majority of Ethereum (ETH) sent to Bidesk was subsequently moved to Huobi and sold during the year 2021. Moreover, the analyst traced approximately 12 Ethereum wallet addresses that received PlusToken-related ETH over the past 30 hours.
According to reports, these wallets are said to contain approximately 25,757 Ether, which is roughly equivalent to $63.1 million. However, not all of this amount was moved from Binance (Bidesk) in 2021; some of it was kept within Bidesk or withdrawn and not transferred to Huobi.
EmberCN found that most of the PlusToken-related tokens in circulation were not sold off, but rather an unspecified small portion. Meanwhile, the second-largest cryptocurrency experienced a 6.5% drop over the past four hours, possibly due to recent selling actions by Jump Trading.
Today, it was disclosed that a Chicago-based trading company offloaded approximately $29 million in ETH. Additionally, Jump Trading has withdrawn an additional $48.2 million, indicating plans to sell on Wednesday morning. According to the report, the firm continues to possess 21,394 wstETH, which is roughly valued at $63.6 million.
In my analysis at this moment, Ether (ETH) has shifted from maintaining a position within the $2,500-$2,540 range to trading approximately at $2,370. This translates into a 6.8% decrease in its daily performance and a more substantial 28.3% drop when viewed over the past week.
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2024-08-08 11:10