Whale “easy” to sell off Ethereum is coming

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2022-08-18 09:05:44

While The Merge event was approaching (September 15 – September 16), a “whale” wallet moved 145,000 ETH to various wallet addresses. It is conjectured that this wallet will most likely sell off ETH before The Merge officially applies.

On-chain data shows that, on August 14, an Ethereum whale wallet that purchased an ICO (first coin offering) was back up and running after 3 years. This wallet address moved 145,000 ETH to various wallets when the ETH price hit the $2,000 mark.

ETH Whale Wallet Transaction History

Observing the transaction history, the above assets of the whale wallet are divided into many transfers. Each transaction has an average volume of 5,000 ETH, with several orders to transfer 15,000-20,000 ETH. Currently, this person has made a total of about 280 million USD worth of transactions. The wallet address purchased at the Ethereum ICO is only about 0.107 ETH.

Since 2019, this is the second time the whale wallet is active. This anonymous user once transferred 5,000 ETH to the Bitfinex exchange when Ethereum was trading around $219. The first transfer was worth about $1 million. Therefore, the recent move of ETH whales aroused concern from the community.

Many argue that whales will most likely sell off ETH before the update is complete, converting from PoW to PoS (algorithm to proof of stake). Cointelegraph stated that the whale’s actions are not cause for concern because the funds are transferred to wallets, not exchanges.

In the event that the whales sell off the above assets, the selling pressure of $250 million is not enough to cause the ETH price to fall deeply. On the contrary, there is also a thinking that whales split many wallets to participate in becoming the network’s transaction validator when ETH updates.

After 2 updates Ropsten and Sepiathe last test is Goerli before merging the Ethereum blockchain, switched to the Proof-of-Stake (PoS) algorithm.

During the test launch, there were still a few minor bugs. Marius van der Wijden, ETH developer noted that there was some confusion due to the two different terminal blocks and many nodes not being updated. In general, these errors only slow down the process but have no significant impact.

Previously, Tim Beiko expected to officially launch The Merge on September 19. However, according to CoinTelegraph, The Merge may be released earlier than expected. The date of the Ethereum network merger came when Tim Beiko and Terence Tsao, co-founders of Prysmatic Labs agreed to the merger plan when the total terminal difficulty (TTD) reached 58750000000000000000000.

See also: 5 misunderstandings about The Merge of Ethereum

Experts criticize that PoW cryptocurrencies like BTC, ETH often cause large electricity consumption and emissions from miners. Every year, the total amount of electricity used by Ethereum miners is even close to the electricity consumption of the whole of Finland. The carbon emissions of the excavators are on par with those of Switzerland.

Therefore, the PoS model is born that will help reduce the harmful impact on the environment by 99%, said Tim Beiko, coordinator of the Ethereum protocol.

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