Does Ethereum co-founder’s $75m Kraken deposit mark a top?

Ethereum co-founder Jeffrey Wilcke has transferred $75.2 million worth of Ether to Kraken, raising speculation about a potential market correction.

On-chain data showed that Wilcke sent 20,000 Ether (ETH) to the California-located centralized crypto exchange Kraken. The motivation for Wilcke’s move was unknown, but an exchange deposit usually signals a plan to sell. 

Community members highlighted that Wilcke’s past transactions have sometimes preceded price declines in Ethereum.

For instance, on Jan. 6, 2021, Ethereum’s price fell after Wilcke deposited 15,000 ETH. Similarly, on Feb. 11 and Feb. 14, 2024, his movements of 4,300 ETH and 10,000 ETH, respectively, were followed by price drops. Despite the recent transaction, Wilcke still holds 106,006 ETH, valued at over $384 million, according to LookOnChain.

Ethereum leaders and organizations selling ETH or making exchange deposits have always drawn public ire. Earlier this year, the foundation sold 4,266 ETH, worth over $12 million, prompting backlash from users accusing it of profiting off reserves.

Users blasted the non-profit organization for supposedly profiting off its Ether reserves. ETH co-creator Vitalik Buterin clarified that the foundation liquidates bits of its holdings to fund initiatives and finance its operations.

Indeed, the foundation’s annual report revealed most of its cash was earmarked for supporting the Ether ecosystem or rewarding projects focused on advancing the largest decentralized finance blockchain.

Ether’s price experienced an uptick alongside other cryptocurrencies after the Nov. 6 U.S. general elections. As the total crypto market whipsawed to $3.4 trillion, ETH rose to $3,550. The token was around 28% off its previous all-time high of $4,878.