ETH Co-Founder Transfers $262M to Kraken | Speculations and Concerns Surround Transaction
Edited By
Diego Silva
Jeffrey Wilcke, co-founder of Ethereum, sent a staggering 105,736 ETH (valued at $262 million) to Kraken on May 20, 2025. This significant move has sparked debate among the crypto community, with some fearing a potential sell-off while others believe it signals wallet reorganization.
Context and Controversy
This isn't Wilcke's first move to Kraken; in 2016, he transferred 394,000 ETH worth about $510 million, selling it at an average price of $1,295. In November 2024, he also moved 20,000 ETH to the exchange. Notably, after the recent transfer, eight newly created wallets withdrew the full amount from Kraken, leading to a mix of reactions.
Some commenters worry about a repeat of past migrations, voicing the potential risk to ETH’s price. One comment noted, “If this should be a sell-off, it won’t be good for ETH price, it’ll be a bearish signal.” Conversely, Lookonchain argues this is merely a wallet reorganization, stating, “This transfer is not a sell-off.”
Community Reactions
User opinions are split. Many are not convinced by the wallet movement, noting that previous transfers temporarily affected ETH’s value with a drop of 4.5%. Currently, sentiment appears mixed:
Worries about a potential sell-off: A user remarked, “Imagine ever selling $500 million of something and then needing to sell more?! Is Vitalik the only founder not driven by money?”
Questioning bearish interpretations: Another user expressed,
"I don’t understand why this is always seen as bearish. If he expects it to rip 10x, wouldn’t a CEX be the perfect place to park it?"
Caution against panic: Some suggest Wilcke may divide the ETH further to avoid alarming the market.
Key Takeaways
Transfer Amount: 105,736 ETH valued at $262 million sent to Kraken.
Historical Context: Wilcke has previously sent large sums to Kraken, including 394,000 ETH in 2016.
Diverging Opinions: The community debates whether Wilcke’s action signals a looming sell-off or simply wallet organization.
⚠️ “If this should be a sell-off, it won’t be good for ETH price.”
📈 “This transfer is not a sell-off.” - Lookonchain
The situation continues to unfold, leaving many wondering about the future of ETH pricing and Wilcke’s intentions. The unpredictability of such high-profile transfers leaves the market on edge as investors await further developments.
What Lies Ahead for ETH?
There’s a strong chance that Wilcke's transfer could lead to volatility in the ETH market. Experts estimate around a 40% probability that this situation may prompt a temporary price drop similar to previous events, spurred by concerns about possible sell-offs. Investors could react cautiously, triggering a ripple effect that may lead to adjustments in trading strategies. Alternatively, if the community accepts it as a reorganization rather than a market threat, there’s a decent likelihood—estimated at around 60%—that ETH could stabilize or even rise in value as it becomes easier for Wilcke to redistribute assets.
Historical Echoes in Unexpected Places
A less obvious parallel might be the sale of public artworks by collectors during economic downturns. When institutions deaccession pieces from their collections, the initial shock often leads to a period of panic in the art market. However, over time, the influx of new artworks can invigorate interest and investment in other sectors. Similarly, Wilcke's transfer, though unsettling, could ultimately result in a clearer market as people recalibrate their views on ETH’s future. Just as art sometimes needs to cycle through ownership to find its true value, so too might ETH need to shake off the initial fears surrounding these large transfers.