- According to a popular cryptocurrency tracking tool, Whale Alert, more than $35 million in Ethereum entered Coinbase. Apparently, this came from an unknown wallet.
- Historically, moving cryptocurrencies to a centralized exchange means they might be sold.
Crypto whales are an important part of the crypto ecosystem and are needed to make many things happen in the market. A crypto whale buying a particular altcoin in large numbers can cause huge changes in the market. It can make many people start buying the same cryptocurrency with the hope of increasing massively. Moreover, the same thing applies when whales start selling off in the market. It usually makes other smaller traders sell off their holdings. An Ethereum Whale holds ETH tokens in large numbers. Whale tracking tool Whales Alert recently found a transaction, and the details are unraveling.
Ethereum Whale Moves Over $35 Million Worth of Tokens
- The transaction happened at exactly 023 07:27:47 UTC on Monday on the Ethereum blockchain. The whale in question was moving the tokens from an unknown wallet. In other words, it wasn’t coming from a centralized exchange like Binance or Kraken.
- The whale then transferred a large number of ETH tokens to a Coinbase wallet. Furthermore, the amount of Ethereum coins in question is worth more than $35,000,000. It was precisely 19,109 ETH, and the transaction fee was 0.000294116411694 ETH.
- Since the token entered into a centralized exchange like Coinbase, it means that the whale is likely from the United States. Whales in other countries mostly use Binance and other country-based crypto exchanges for their transactions.
Significance of Whales Moving Ethereum Tokens
- To understand the significance of the recent transaction, you need to know how centralized exchanges function. Apparently, Coinbase is a centralized crypto exchange, one of the top leading exchanges in the United States.
- Centralized exchanges are for the buying and selling of cryptocurrencies. Especially when buying large quantities of cryptocurrencies, these exchanges can serve as an intermediary for making such transactions. Buying from unknown exchanges and moving to an unknown wallet usually signifies investment. For instance, an Ethereum whale purchasing large amounts of crypto and moving them to an anonymous wallet means investment. It probably means that the whale is leaving it for a long time.
- However, it means a totally different thing when the whale is moving a token to a centralized exchange. Apparently, the recent transaction where the Ethereum whale moved over $35 million means they may be selling. Moreover, whales already know that storing large amounts of cryptocurrencies in CEXs is not secure. So moving them to a place like Coinbase means the whale might be dumping.
Conclusion
A whale tracking platform, Whale Alert, made a post on Twitter alleging that an Ethereum whale sent massive tokens to Coinbase. Apparently, the total number of ETH tokens was 19,109 ETH and worth more than $35 million. Also, this particular transaction indicates that a whale might have sold out.
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