The cryptocurrency market was taken aback by the news of a sale for Ethereum. Ethereum is the world’s second largest cryptocurrency and largest altcoin project. Here are the details…
Some data surfaced for biggest altcoin
The Ethereum Foundation (EF) once again timed the peak perfectly, selling over 100,000 ETH during the 2021 bull period. The Ethereum Foundation started last year with 460,000 ETH. He sold 30,000 ETH on March 12, 2021, after the price soared from $700 to $2,000 in December. The price increased significantly that March. However, according to some experts, the Ethereum Foundation probably made around $54 million in profit for these 30,000 ETH.
The next sale for 36,000 ETH was on May 21, 2021. This marks about two weeks after the price hit the “peak” of $4,400 on May 21, ranging from $3,000 to $2,200. According to some, much of this range may have been caused by the Foundation itself. That’s why they got around $90 million at the mid-$2,500 price point.
Then they have a more gradual sales in September-October. Around 10,000 coins were sold during November and 20,000 on 11 November 2021. November 11 marks the top of the price of Ethereum at $4,800. As we have also reported as Kriptokoin.com, ETH then gradually moved down. They raised about $96 million for these 20,000 coins, and the other 20,000 sold in September-November cost between $3,500 and $4,800. In other words, an average of $4,000 gives the foundation a profit of $80 million.
Has there been a sale this year?
The foundation started 2022 with 353,000 ETH. According to experts, 10,000 ETH units were sold in May-June this year, probably for around 23 million dollars. They currently hold 339,000 ETH worth $400 million. That’s slightly more than they monetized with $340 million worth of ETH last year. That additional $340 million in coins should be enough for at least 10 years. The foundation’s burn rate is $20 million per year as of 2019.
According to Ethereum co-founder Vitalik Buterin, the Foundation sold “basically at the top” in January 2018. Therefore, the factor behind their continued selling for such large sums is not entirely clear. “I got the Ethereum Foundation to basically sell 70,000 ETH as it was at the top and it has now doubled our profits, so it was a good decision with a lot of impact,” Buterin said in 2019.
The foundation keeps its assets liquid
This gave them $100 million, which should theoretically be plenty of funding by 2024. The foundation is still one of the largest holders of ETH. They owned eth in millions in 2015 and over a million in 2016. In just 6 years they have reduced their holdings by about 67 percent, the Foundation has no such income, but they can buy stock with a portion of their assets to generate returns.
This could potentially keep them afloat if they don’t continue to sell their holdings after their staking rewards are unlocked. If the foundation stakes all of its current assets, it can generate 17,000 ETH per year with a 5% yield. However, they may seek to diversify their portfolios and keep their holdings liquid.
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