Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Ethereum Foundation clears the air on $100 million transfer

Ethereum Foundation clears the air on $100 million transfer

CryptopolitanCryptopolitan2024/08/23 16:00
By:By Jai Hamid

Share link:In this post: Ethereum Foundation moved $94 million worth of ETH to Kraken, saying it’s for routine expenses, not a panic sale. Rumors are flying about insider trading, with some insiders allegedly profiting from secret info on Ethereum updates. Security is a mess with recent hacks, and people are questioning if the foundation is doing enough to protect the network.

Yesterday, the Ethereum Foundation moved 35,000 ETH—about $94.07 million worth—to a Kraken deposit address, according to data from Arkham. The crypto community, already on high alert, started firing up speculations. 

Is the foundation cashing out for a rainy day, or is something more sinister happening behind the scenes? People started asking questions, and the internet got noisy. 

The foundation then came out with a statement to calm everyone down. Aya Miyaguchi addressed the situation, saying: 

“This is part of our treasury management activities. EF has a budget of ~$100 million per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat.”

Aya explained that the transfer doesn’t mean the foundation is making a massive sell-off. Instead, they’re doing some routine financial housekeeping.

She mentioned that due to regulatory issues, they were advised not to make any big moves for a while. That left them a bit stuck, and they couldn’t talk about their plans beforehand. 

Ethereum Foundation clears the air on $100 million transfer image 0

Now, they’re moving carefully, making gradual sales, and ensuring things don’t go haywire. But if you think that’s where the drama ends, you’re wrong. The foundation’s financial maneuvers are just one part of a much bigger picture.

Insider trading?

Let’s not forget the big rumor mill that kicked off earlier this year. Allegations of insider trading have been swirling around the Ethereum Foundation like a dark cloud.

See also U.S. job market could lose one million jobs in major revision

Apparently, some folks in the foundation might have been playing a dirty game—using inside information to make trades before the rest of us even had a clue. 

We’re talking about potentially knowing ahead of time about Ethereum’s development updates, partnerships, and all the juicy bits that can make or break a coin’s value.

You pull a stunt like insider trading, and suddenly, everyone’s pointing fingers and crying foul. The Ethereum Foundation, of course, hasn’t confirmed any of these rumors, but the lack of a strong denial or any real comment isn’t doing them any favors either. 

Hacks, breaches, and a whole lot of headaches

If the insider trading allegations weren’t enough, let’s throw in some good old-fashioned hacks. The Ethereum ecosystem has had its fair share of security nightmares, and June 2024 was no different. 

The Loopring protocol got exploited, and $5 million worth of ETH vanished into the ether—no pun intended. Now, this wasn’t directly the foundation’s fault, but let’s be real. 

When your ecosystem has more holes than Swiss cheese, people are going to start pointing fingers. If they’re not safeguarding their own backyard, how can anyone else feel safe building on their turf?

Transparency—or the lack of it—is another hot button issue here. Critics have been pretty vocal about the Ethereum Foundation’s financial dealings.

See also Gold hits all-time highs as markets wait for America's rate cut decision

People want to know where all that money from the initial coin offering (ICO) and other donations went. We’re talking about millions, maybe even billions, in today’s market. 

And yet, there’s a lot of mystery around how the foundation allocates these funds. Aya and her crew can talk about budgets and expenses all they want, but until there’s a clear, detailed report, people are going to be suspicious.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

What’s new for Ciri in The Witcher 4? Developers reveal key details

Share link:In this post: The Witcher 4 developers CD Projekt Red have announced changes to Ciri’s abilities. Her teleportation powers and ability to zip around will be drastically toned down or completely removed. The new trailer shows Ciri using a spell called “Bolt”.

Cryptopolitan2024/12/22 02:55

Humanoid robots are getting better too fast thanks to AI advances

Share link:In this post: Robots powered by AI are getting so advanced that they could start replacing human jobs in industries like manufacturing and retail by 2030. The humanoid robot market could hit $7 trillion by 2050, with over a billion robots expected to be in use worldwide. Big names like Tesla, XPeng, and Xiaomi are building robots for factories, stores, and even homes, making this a massive business opportunity.

Cryptopolitan2024/12/22 02:55