Ethereum Foundation Sold ETH of 1,700

Key Points:

• The Ethereum Foundation sold ETH, totaling 1,700 ETH, worth approximately $2.74 million.
• The sale of ETH reserves may be aligned with funding the foundation’s ongoing operations, including research grants.

On-chain data shows that the Ethereum Foundation address received 1,700 $ETH from a Safe multisig wallet 0xbC9a9, and then swapped the funds for nearly 2.74 million $USDC.

Ethereum Foundation Sold ETH Holdings and Converts Proceeds to USDC

According to @Watcher.Guru’s report on October 9th, the Ethereum Foundation has sold a significant portion of its Ethereum holdings. The organization sold 1,700 ETH, which is estimated to be worth $2.74 million.

Interestingly, the Foundation decided to convert the proceeds of the sale into USDC, a stablecoin backed by the US Dollar. Subsequently, an additional 494k USDC was transferred from the multisig wallet to the Ethereum Foundation. This move suggests that the Foundation aims to secure the value obtained from the sale amidst the volatile crypto market conditions.

Bearish Sentiment Looms after Ethereum Foundation Sold ETH

While the reasons for the sale are not clear, the converted amount appears to be aligned with funding the foundation’s ongoing operations, including research grants. In 2021, the foundation incurred total expenses of $48 million, which included developer grants to improve the Ethereum infrastructure. The current bear market conditions may have necessitated the liquidation of portions of ETH reserves to maintain funding.

Despite still holding substantial assets, the Ethereum Foundation’s activities are affected by price declines, similar to any other entity. At present, ETH is trading around $1,587, representing a 2.76% drop in value over the last 24 hours, according to CoinMarketCap data.

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