Ethereum Co-Founder Transfers $72M to Kraken Exchange

TLDR

Ethereum co-founder Jeffrey Wilcke transferred 20,000 ETH ($72M) to Kraken on Nov. 28
This is Wilcke’s fourth major transfer to Kraken in 2024, totaling over $147M
Wilcke’s wallet retains 106,006 ETH after the transfer
Ethereum Foundation and co-founders face increased community attention due to large transfers
ETH shows 51.5% yearly return, lagging behind BTC and SOL’s 116% gains

Jeffrey Wilcke, one of Ethereum’s co-founders, has transferred 20,000 ETH to cryptocurrency exchange Kraken, valued at approximately $72 million as of November 28, 2024. This transaction represents the latest in a series of substantial movements from Wilcke’s holdings to the popular trading platform.

The transfer marks Wilcke’s fourth major movement of ETH to Kraken during 2024, bringing his total transfers for the year to more than $147 million. After this latest transaction, Wilcke’s wallet maintains a balance of 106,006 ETH, indicating he retains substantial holdings in the cryptocurrency he helped create.

According to analysis from CryptoQuant’s community analyst Maartunn, Wilcke’s pattern of transfers began on February 10, when he moved 4,300 ETH, worth $10.6 million at the time. This initial transfer was followed by a larger movement of 10,000 ETH, valued at $27.2 million, just four days later.

🚨 Ethereum Co-Founder Sold!

Jeffrey Wilcke deposited 20,000 ETH (~$72.2M) to Kraken today at $3,608/ETH. 😬

His last deposit? May 2024: 10,000 ETH ($37.3M) right before a market dip.

Still holding 106,006 ETH (~$384M). What’s his next move? 🤔#Crypto #Ethereum pic.twitter.com/BsJkmCfssc

— Maartunn (@JA_Maartun) November 28, 2024

The third substantial transfer occurred on May 22, when Wilcke moved another 10,000 ETH to Kraken, with a value of $37 million at the time of the transaction. These systematic transfers have drawn attention from the cryptocurrency community, particularly given their size and frequency.

The timing of these transfers comes during a year of increased scrutiny of Ethereum Foundation (EF) and its co-founders’ movements of tokens. A notable incident occurred on August 23, when the Ethereum Foundation transferred 35,000 ETH to Kraken, valued at $94 million at the time.

This large foundation transfer prompted community discussion and required clarification from key figures in the Ethereum ecosystem. Josh Spark, an EF contributor, and Vitalik Buterin, another co-founder, addressed the community’s concerns by explaining that the transfer was intended to support institutions that enhance the Ethereum ecosystem.

On-chain data platform Arkham has tracked the movement of Ethereum Foundation-related addresses, noting nearly 45,000 ETH in negative net flows throughout 2024. This metric indicates more ETH leaving these addresses than entering them over the course of the year.

The transparency of blockchain technology has allowed for detailed tracking of these movements, including those of Vitalik Buterin’s associated wallets. Buterin’s addresses show a negative net flow of 6,000 ETH for the year to date, as of November 28.

Buterin himself addressed community concerns about his own transfer of approximately $10 million worth of ETH earlier in the year. He stated that since 2018, he has not realized profits for personal gain, emphasizing that all sales have been directed toward supporting various projects within the Ethereum ecosystem or charitable causes, including biomedical research and development.

I haven’t sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the ethereum ecosystem or broader charity (eg. biomedical R&D)

— vitalik.eth (@VitalikButerin) August 31, 2024

These large transfers have attracted particular attention from ETH investors due to the cryptocurrency’s market performance in 2024. While the broader crypto market has shown strong growth, Ethereum’s price appreciation has lagged behind some of its major competitors.

Data from Artemis shows that Bitcoin and Solana have both achieved returns of approximately 116% in 2024. In contrast, ETH has recorded a more modest increase of 51.5% during the same period, falling short of the crypto market’s average return of 109%.

The latest transfer comes at a time when market participants closely monitor large movements of cryptocurrencies, particularly those involving founding team members or early contributors. Such transfers can provide insights into potential market dynamics and institutional movements within the cryptocurrency space.

The timeline of Wilcke’s transfers shows a pattern of increasingly larger movements, from the initial 4,300 ETH in February to the current 20,000 ETH transfer. This pattern has emerged against the backdrop of evolving market conditions and broader cryptocurrency adoption.

Kraken, as the recipient exchange of these transfers, continues to serve as a major platform for large-scale cryptocurrency transactions. The exchange’s role in facilitating these substantial movements highlights its position as a trusted venue for high-value crypto transfers.

The transparency of these transactions on the Ethereum blockchain allows for real-time tracking and analysis of major token movements, providing market participants with valuable data about potential market impacts and institutional behavior.