Ethereum (ETH) co-founder Jeffrey Wilcke recently transferred 20,000 ETH, worth over $72 million, to the Kraken exchange. This is the fourth time he has moved ETH to Kraken this year, totaling over $147 million. Wilcke’s wallet still holds 106,006 ETH, showing a pattern of significant transfers throughout the year.
The Ethereum Foundation (EF) and Ethereum co-founders have been facing community scrutiny due to large ETH transfers. In August, the EF moved 35,000 ETH to Kraken, sparking concerns from the community. However, EF contributor Josh Spark and Ethereum co-founder Vitalik Buterin explained that the transfer was to support institutions that promote Ethereum’s ecosystem.
On-chain data platform Arkham reported nearly 45,000 ETH in negative net flows related to EF addresses in 2024, further intensifying community scrutiny. Buterin also addressed a $10 million ETH deposit, stating that all profits from his sales were used to support valuable projects within the Ethereum ecosystem or for charitable purposes. As of Nov. 28, Buterin’s wallets show a year-to-date negative net flow of 6,000 ETH.
ETH investors are worried about these transfers, especially given Ethereum’s underperformance compared to Bitcoin (BTC) and Solana (SOL) in 2024. While Bitcoin and Solana have seen significant yearly returns of close to 116%, ETH has only increased by 51.5% so far this year, well below the market average return of 109%.
Overall, the continuous large ETH transfers by Ethereum co-founders and the EF have drawn attention and raised questions within the community. With concerns about the impact on Ethereum’s price and value, transparency and explanations from key figures in the Ethereum ecosystem will be crucial moving forward. Investors will be closely watching for any developments or further transfers that may influence ETH’s performance in the market.
