Whale Wallet Awakens: 61,000 ETH Transferred to Exchange After 8 Years

Crypto Twitter is abuzz with news of a reactivated Ethereum (ETH) "whale" wallet that has emerged after 8 years, swiftly transferring its entire holdings to an exchange.

Whale Wallet Awakens: 61,000 ETH Transferred to Exchange After 8 Years

On the morning of July 19, 2023, crypto investors on Twitter circulated reports of an Ethereum wallet containing 61,216 ETH (valued at $116.3 million USD) that has reactivated after 8 years of dormancy.

Notably, this is a pre-mine wallet, meaning it received ETH prior to Ethereum's ICO event in 2015. Specifically, the 61,216 ETH was deposited into the wallet on Ethereum's genesis block date of July 30, 2015, valued at $19,000 USD at that time (with ETH's ICO price at $0.311 USD).

Speculation runs rife regarding the identity of the wallet's owner, positing possibilities ranging from Ethereum's founders, private investors, or significant members of the Ethereum Foundation.

The timing of this wallet's reactivation is particularly coincidental as the Ethereum community gathers for the EthCC event in Paris, France.

Concerns about the aforementioned ETH wallet escalate as it immediately transferred its entire assets to the Kraken exchange.

Presently, the true purpose of this "whale" ETH wallet remains unclear. Many quickly concluded that approximately $120 million USD worth of Ethereum may soon flood the market. Speculation suggests the wallet's owner may have foreseen potential adverse impacts on Ethereum in the near future and opted to preemptively sell off assets to mitigate risks.

This reasoning isn't unfounded, given global regulatory scrutiny in 2023, particularly from the U.S., which has targeted several major crypto projects. SEC Chairman himself has hinted at the possibility of ETH being classified as a security, especially since the shift to Proof-of-Stake algorithm.

• Read More: Could Ethereum Become a Security After The Merge?

In the past, the Ethereum Foundation, a non-profit organization developing Ethereum, has sold ETH on several occasions to cover operational expenses. ETH prices often peaked around the time of these sales and subsequently experienced significant declines.

Others suggest that the wallet's owner might simply be sending ETH to Kraken for staking purposes. With 61,000 ETH, stakers could potentially earn up to $3.5 million USD annually, equivalent to $10,000 USD per day.

If staked and earning 3% post-Kraken staking fees

• Every year: ~$3.5 million
• Every month: ~$300,000
• Every day: ~$10,000

ETH prices at the time of writing have shown no immediate reaction to this news, largely following the general trends of Bitcoin and the crypto market. Ethereum recently surpassed the $2,000 USD mark on July 14 for the first time since April 2023, buoyed by news of Ripple's XRP securing a significant victory in its SEC securities lawsuit, but subsequently fell back to around $1,900 USD.

1-hour chart of ETH/USDT pair on Binance at 08:10 AM on July 19, 2023