Blockchain observer LookOnChain has revealed that a wallet holding pre-mined ETH has moved all the 61,215 tokens estimated to be worth about $116 million to crypto exchange Kraken. Until today’s transaction, the wallet had been dormant for more than seven years.
LookOnChain says the wallet received the ETH tokens in 2014 during an Initial Coin Offering (ICO). At the time, each token sold for $0.31.
Ethereum’s ICO
Ethereum’s ICO, also called the Genesis event, is regarded as one of the biggest occasions to ever happen in the crypto space. It was organized by Ethereum Foundation and occurred between July 21, 2014, and August 31, 2014.
During the Genesis event, over 60 million ETH tokens were issued to early investors, with the Ethereum Foundation raising nearly $18.2 million. The funds were later used to develop the Ethereum blockchain, which is currently the second-largest network, only behind Bitcoin.
Following Ethereum’s ICO success, several blockchain projects also began raising development funds via token sales. However, not all ICOs have been genuine. Investors have lost billions in the last few years, causing regulatory authorities to launch investigations into the crypto fundraising model.
Also read:Meanwhile, blockchain explorer Etherscan indicates that the $116 million transaction was completed at a considerably low gas fee ($3.22).
Notably, the wallet holder initially sent 0.05 ETH to their Kraken account as a test transaction to ensure the recipient’s address was accurate before transferring all tokens.
The reason for the transfer, however, remains unclear. But it could be because the whale wants to take profits after holding the tokens for nine years. If they sell, the Ethereum price could drop slightly.
Other Whales’ Domant Wallets That Have Recently Made Huge Transfers
This isn’t the first case this year involving whales transferring funds from dormant wallets to crypto exchanges and other wallet addresses. In February, a wallet that was last used in 2012 sent 410 BTC worth roughly $9.5 million. In May, another wallet that had been inactive since 2011 transferred 140 BTC to Binance.
That month, an ETH whale who also acquired their tokens during the 2014 ICO staked 4,000 tokens worth about $7.3 million. Before that, the wallet containing those tokens had not made any transactions for four years.
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