Ethereum Foundation Shuts Down Rumors of $12.8M ICO Wallet Dump—What’s Really Happening?
Rumors swirled this week as old Ethereum ICO wallets suddenly moved millions—but the Foundation insists it's not cashing out. Here's the breakdown.
The Ghosts of ICOs Past
On-chain sleuths spotted $12.8M in ETH hitting exchanges from wallets tied to Ethereum's 2014 crowd sale. The kind of move that typically sends crypto Twitter into a tizzy.
Damage Control Mode
The Foundation quickly denied involvement, calling it 'unauthorized activity'—because nothing says decentralization like a centralized PR response. Meanwhile, traders scrambled to parse whether this was insider selling or just another crypto O.G. finally taking profits after a decade of diamond hands.
Why This Matters Now
With ETH hovering near multi-year highs, every whale move gets magnified. The real question? Whether this sparks fresh FUD or gets brushed off like another 'Bitcoin is dead' headline—because in crypto, history's just prelude to the next pump.
ETH Foundation scales back as corporate holders rise
Over the past months, the foundation has strategically reduced its holdings through planned transactions, including a July sale of about 10,000 ETH to publicly traded company SharpLink Gaming, which is now the second-largest corporate ETH holder. The sale was conducted directly on-chain, avoiding market disruption.
This MOVE came amid the rapid rise of corporate ETH treasuries, suggesting the Foundation is gradually offloading supply into the hands of public companies. In just a few months, this new class of holders has amassed over $14 billion worth of ETH, concentrating a growing share of the network’s supply in corporate hands.
Ethereum co-founder Vitalik Buterin recently cautioned against the growing trend, describing it as a double-edged sword. He noted that while these public companies can broaden Ethereum’s reach by giving mainstream investors indirect exposure, the benefits could quickly turn into systemic risks if these holdings become overleveraged.
Buterin described a scenario in which companies borrow aggressively against their ETH reserves, leaving them vulnerable to forced liquidations during a downturn, a chain reaction that could amplify market volatility and damage trust in Ethereum’s stability.
Meanwhile, Ethereum has been on a tear over the past days. According to crypto.news data, ETH is currently trading at $4,776, up approximately 30% of the week and just 2.35% shy of its all-time high.
