Vitalik Buterin, co-founder of Ethereum, has raised eyebrows in the crypto world with his recent transfer of 600 ETH, valued at $1 million, to Coinbase on August 21st. The move comes on the heels of Buterin repaying 251,000 RAI and withdrawing $1.6 million in ETH on August 20th. Notably, RAI is an ETH-backed non-pegged stablecoin.
This maneuver is raising questions, especially given the current sluggish state of the crypto market. Both Bitcoin (BTC) and Ethereum (ETH) have seen their prices plummet by over 10% in the past week, with BTC hovering slightly above $25,900 and ETH just above $1,650 at the time of writing.
Historically, the transfer of ETH tokens by Vitalik Buterin or the Ethereum Foundation has often been followed by a dip in ETH’s price. While the motive behind this latest transfer remains a mystery, there’s speculation that Buterin might be gearing up for a substantial sell-off. However, it’s equally plausible that this transfer is a one-time event. Social media is buzzing with conjectures, and the crypto community is keeping a keen eye on developments.
Market analysts and experts are now closely watching whether Ethereum’s value will nosedive if it breaches the critical support level of $1,550-$1,600. The entire cryptocurrency market has experienced a significant contraction, with a more than 10% drop in total market capitalization over the past week, bringing it to approximately $1.05 trillion.
Coinbase, on the other hand, is grappling with regulatory challenges in the United States, courtesy of the Securities and Exchange Commission (SEC). In early June, the SEC filed a lawsuit against the exchange, alleging it violated securities laws by operating as an unregistered broker-dealer.
Coinbase’s stock (COIN) has not been immune to the market’s turbulence, declining nearly 9% over the past week. At the time of writing, it was trading at $73.9, underscoring the uncertainty prevailing in both the cryptocurrency and traditional financial spheres.