As reported by crypto journalist Colin Wu, citing data from Arkham Intelligence, The Golem Network's multi-signature address, under the code "0x7d," transferred 4,000 ETH, equivalent to about $10.4 million, to Coinbase and Binance, two of the world's largest exchanges. Currently, Golem's wallet contains 22,834 ETH, worth about $60.2 million.
The Golem Network is a decentralized computing platform that allows users to buy and sell computing power through an open-source, peer-to-peer marketplace. It is built on the Ethereum blockchain and aggregates resources from users' devices to create a global supercomputer for tasks like CGI rendering and machine learning.
Gamza KhanzadaevGolem was founded in 2016, but prior to its founding, it raised 820,000 ETH in ICO, which at the time was the equivalent of just $8.44 million. To put it in perspective, eight years later, this amount of the altcoin is equivalent to $2.132 billion, as the price of Ethereum (ETH) has increased by over 25,490.99% - from $10.4 per token to $2,634.
However, the team behind the project raised this ETH stock not for holding but for funding its operations. That is why its transaction history is full of transfers like the recent one.
Ethereum whales selling
Arguably, depositing 4,000 ETH on Binance and Coinbase will do little damage to the token's price, but it can be a pretty eloquent indicator of sentiment toward the main altcoin for market participants. This said, Golem is not the first ecosystem entity to allegedly sell part of its ETH holdings this year.
Tomiwabold OlajidePreviously, such actions were noticed on behalf of the Ethereum Foundation, for example. What this will do to the price of the major altcoin and how traders will react is an open question.
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U.Today Editorial Team