Ethereum founder transfers $72M to Kraken exchange
TLDR
Ethereum founder Jeffrey Wilke transferred 20,000 ETH ($72M) to Kraken in 2018. Public attention due to large transfers shows ETH 51.5% annual return, lagging behind BTC and SOL's 116% gain
Jeffrey Wilke, one of the founders of Ethereum, transferred 20,000 ETH to cryptocurrency exchange Kraken on November 28, 2024, worth approximately $72 million. .
The transfer marks Wilke's fourth major ETH move to Kraken in 2024, bringing his total transfers for the year to over $147 million. After this latest transaction, Wilke's wallet maintains a balance of 106,006 ETH, indicating that he holds significant holdings in the coin he created.
According to an analysis by CryptoQuant's Community Analyst Maartunn, Wilke's transfer scheme began on February 10th when he moved 4,300 ETH, worth $10.6 million at the time. This was followed by a massive move of 10,000 ETH, valued at $27.2 million, four days after the initial transfer.
🚨 Ethereum Co-Founder Sold Out!
Jeffrey Wilke staked 20,000 ETH (~$72.2M) to Kraken today at $3,608/ETH. 😬
Last deposit? May 2024: 10,000 ETH ($37.3M) before market flood.
Still holding 106,006 ETH (~$384M). What is the next step? 🤔 #Crypto #Ethereum pic.twitter.com/BsJkmCfssc
— Maartun (@JA_Maartun) November 28, 2024
The third major transfer was on May 22nd, when Wilke moved another 10,000 ETH to Kraken for a transaction worth $37 million. These strategic transfers have drawn attention from the cryptocurrency community, especially for their size and frequency.
The timing of these transfers comes in a year where the Ethereum Foundation (EF) and its co-founders have ramped up their token activities. A significant event occurred on August 23, when the Ethereum Foundation transferred 35,000 ETH to Kraken, which at the time was 94 million dollars.
This major base transfer has sparked community discussion and requires clarification from key people in the Ethereum ecosystem. EF contributor Josh Spark and co-founder Vitalik Buterin expressed the community's concerns and explained that the transfer is intended to support institutions that improve the Ethereum ecosystem.
On-chain data platform Arkham tracked the activity of addresses linked to the Ethereum Foundation, citing negative net flows of around 45,000 ETH throughout 2024.
The transparency of blockchain technology has made it possible to track these activities in detail, including those of Vitalik Buttery's connected wallets. Buterin's addresses show a negative net flow of 6,000 ETH for the year to date since November 28.
Buterin himself addressed the community's concerns about the transfer of roughly $10 million worth of ETH at the beginning of the year. He stated that since 2018 he has not made a profit for personal gain, emphasizing that all sales are aimed at supporting various projects or charitable causes in the Ethereum ecosystem, including biomedical research and development.
Since 2018, I have not sold or deposited the funds. All sales were to support various projects that I thought were worthwhile, whether in the ethereum ecosystem or a broader charity (eg biomedical R&D).
— vitalik.eth (@VitalikButerin) August 31, 2024
These large transfers have attracted special attention from ETH investors due to the performance of the cryptocurrency market in 2024. While the broader crypto market has shown strong growth, Ethereum's price appreciation has lagged behind its main competitors.
According to the data from Artemis, in 2024 Bitcoin and Solana both received approximately 116% returns. On the other hand, ETH recorded a more modest increase of 51.5% during the same period, which is less than the average return of 109% of the crypto market.
The latest move comes as market participants are closely monitoring the movement of large cryptocurrencies, particularly founding team members or early contributors. Such transfers can provide insights into potential market dynamics and institutional activity in the cryptocurrency space.
Wilke's timeline of transfers shows increasingly large moves, from the first 4,300 ETH transfer in February to the current 20,000 ETH transfer. This pattern has emerged against the backdrop of market conditions and widespread adoption of cryptocurrency.
As the receiving exchange for these transfers, Kraken continues to serve as a major platform for large cryptocurrency transactions. The exchange's role in facilitating these significant activities underscores its position as a trusted place for high-value crypto transfers.
The transparency of these transactions on the Ethereum blockchain allows for the monitoring and analysis of major token movements in real time, providing valuable information to market participants about possible market effects and institutional characteristics.
