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Ethereum co-founder Buterin reportedly Dumped 3,000 ETH Following FTX Liquidation news

ethereum

TL;DR Breakdown

  • On-chain data indicates that Vitalik Buterin purportedly dumped 3,000 ETH on the DeFi protocol Uniswap V3 for $1,250.30.
  • Buterin claimed that the FTX collapse had a particularly negative impact on the crypto markets.

Ethereum co-founder Vitalik Buterin received 5,000 ETH in two payments from the same address soon before transferring 3000 ETH to the DeFi protocol, according to his transaction history as seen on Etherscan.

 According to DeFi Llama, Uniswap is an automated market maker that presently has about $3.6 billion in ETH locked in a number of dApps and DeFi protocols.

Later, Buterin converted his 3,000 ETH into the stablecoin USDC, which may indicate that he anticipates a decline in the price of ETH following the fall of FTX, the formerly fifth-largest cryptocurrency exchange in the world.

The stablecoin USDC is linked to the U.S dollar. Decentralized finance users that employ stablecoins have the chance to profit from their crypto assets. They additionally protect owners from the volatility of other cryptocurrencies.

Ethereum strategy on market volatility

On November 14, 2022, on-chain data from Santiment revealed that while active ETH deposits increased, the number of daily active users on Ethereum decreased, indicating that speculation about a lack of confidence in the crypto industry was prompting traders and investors to hold back

When Buterin moved 30,000 ETH from his wallet in May, there was speculation that the price of ETH, which was trading at $2,086 at the time, would experience a bearish reversal.  It turns out that he transferred the money to a wallet that was used for charity contributions.

Shortly after ETH hit an all-time high of $4,891 on November 16, 2021, the Ethereum Foundation sold 20,000 ETH to Kraken. Five months back, at a comparable peak, they also cashed out 35,000 ETH to Kraken. Famous crypto trader Edward Morra brought this up and waggled the question of whether the Ethereum Foundation knew something that others didn’t given that the price of ETH dropped by 40% in less than two months.

Volatility to persist as confidence is restored

While the FTX scandal caused Bitcoin to drop below $16,000, Ether was able to establish a support range between $1,000 and $1200. It’s hard to say whether ETH’s bottom has been reached. The most recent low was $880 on June 18, 2022.

The centralized exchange business is currently rife with uncertainty, and as the failure of FTX becomes more and more real, many players are frantically trying to establish their legitimacy.

Because FTX presented itself as a reliable institution, Buterin claimed that the FTX collapse had a particularly negative impact on the crypto markets.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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