Ethereum (ETH) has been the darling of many in recent times bull market in cryptocurrencies. But like most other coins, ETH is falling hard. Now even whales that have been inactive for years are shifting large amounts, although unfortunately the reason is not entirely clear.
Whales move ETH
PeckShield writes that two Ethereumaddresses have moved a lot of ether. To be precise, it is in total at 22,982 ETH or about 25.7 million euros. The funds would come from the crypto asset manager Genesis and the exchange Poloniex.
The penultimate time the tokens were moved was in October of 2018, when ether was worth just $221 per coin. But now, according to PeckShieldAlert, they’ve moved to two “fresh addresses.” We don’t know what the purpose of this is. They may be being prepared for sale, although they appear to be new addresses and not exchange wallets. It could also be that they have been moved to more secure wallets.
#PeckShieldAlert 2 Dormant addresses transferred 22,982 $ETH (~27.2M) to 2 fresh addresses, their last movement was October 2018 (1,535 days ago).
These $ETH originated from Genesis and Poloniex pic.twitter.com/MXKpLnypif— PeckShieldAlert (@PeckShieldAlert) December 19, 2022
Related to bankrupt Genesis
We do know that Genesis ran into financial problems last month. That may have something to do with it. This huge crypto lender had a lot of exposure to the bankrupt crypto exchange FTX, so it suddenly stopped allowing withdrawals. This had far-reaching consequences, because many institutions have placed their tokens with Genesis for, for example, a strike profit. Even the Dutch company Bitvavo had exposure to Genesis because of this. The American exchange Gemini would even have lost 900 million dollars.
Community members expect the tokens to be used as collateral for a project, possibly Core DAO. Yet this is no more than a rumor. It would mean that the Genesis might already be slowly getting out of trouble. At the end of last month, it denied that it wanted to file for bankruptcy soon.
Unfortunately, Genesis is not the only one that has gone bankrupt. The bear market is still worrying even now forced sellers. For example, the Rotterdam crypto asset manager Yieldt went bankrupt, which fortunately did not turn out as disastrous as the bankruptcy of many other companies.