Dormant Ethereum Wallet Awakens After 8 Years, Accumulating $14.8M Gains
On May 27, a dormant Ethereum wallet, acquired before the launching of the Ethereum Initial Coin Offering (ICO) in 2015, was officially activated. News concerning the reawakening of the inactive Ether wallet thrilled the crypto community since, through the latest upgrades on the Ethereum network, the owner managed to transfer 8000 ETH in minutes.
Initially, the unnamed owner purchased the wallet when ETH was valued at thirty cents in 2015. The owner confessed that after successfully participating in Ethereum ICO, the wallet accumulated roughly 8000 ETH. Since then, the wallet has been dormant until May 27, when the owner moved 1 ETH to another wallet.
Importance of Reactivating the Dormant Wallet
After a successful transaction, the owner transferred the remaining amount to the new wallet, which translates to 7999 ETH. An analyst from Lookonchain, a well-known blockchain firm, first observed this transaction.
The Lookonchain team later updated the Twitter community of the unexpected transaction linked to the dormant account. Commenting on the tweet, some Twitter users demanded an answer on the reason for the transfer. In a follow-up tweet, one Twitter user explained that the dormancy of the ETH wallet was because the owner had been serving a jail term.
Another user questioned the functionality of the Ethereum recovery feature. Per the owner’s post, after transferring the 8000 ETH, the inactive Ether was valued at $14.7 million.
In 2015 the owner mentioned investing roughly $2500 to acquire 8000 ETH. The post illustrated that the market value for the Ether was $0.31 per ETH token.
As of this writing, the ETH is exchanging $1,905.20, a 3.10% increase in a day. This implies that the owner garnered a profit of 590000% in 8 years.
Differences Between Old and New Ether Wallet
Based on the new wallet transaction history, it was observed that the owner engaged in a few transactions. Etherscan data showed that the owner received 207 ETH, which amounts to $380000 from a dormant wallet.
The transaction involving the 207 ETH was completed days before the owner made the 8000 ETH transfer. According to data shared by DeBank, it was observed that the recipient wallet owned Gensler tokens (GENSLR) worth $46 and Dejitaru Tsuka (TSUKA) tokens amounting to $0.24.
Reportedly the Ethereum ICO was launched into two phases, whereby the initial stage involved the presale process. At the Ethereum ICO presale stage, which occurred between July and September of 2014, the ETH tokens were sold to new traders generating a profit of $18 million. The primary presale was conducted when ETH traded at 1BTC for 2000 ETH.
The second phase of launching the Ethereum ICO involved the rolling out of the Ethereum blockchain in 2015. After the successful launch of the Ethereum blockchain, the investors were allowed to trade their locked ETH.
Reason Behind the Reawakening of Dormant Wallets
Irrespective of this, another dormant ETH wallet reawakened last month after 8 years of dormancy. It was observed that the owner transferred inactive 2360 ETH to a new wallet on April 24, which generated a profit of over $4.5 million.
Before this, another trader activated an ETH wallet that had been inactive since 2018. The said reawakening involved a simple test of moving 10226 ETH to a new address. This transaction was completed on March 5, generating an income of $19.6 million.
Following the multiple awakening of dormant ETH wallets, experts have launched an investigation to examine the main reason for the reawakening of the inactive wallet. In a recent study, the expert examined whether the activation of dormant wallets aimed at shielding the investor from losses due to uncertainty in the crypto market.
Some blockchain analysts observed that in case of a malicious attack that involves a measurable amount of money, it is always advisable to reawaken dormant wallets to assess the damages caused by the hack. Additionally, the experts noted that most of the reported reawakening of a dormant account was rooted in the owner’s desire to sell the digital asset when the market is favourable.
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