Crypto Market Collapses, Ethereum Foundation Sells 1,700 ETH Worth IDR 43 Billion

The Ethereum Foundation sells more than a thousand ETHs. (Photo; Doc. Diario Bitcoin)

JAKARTA In the midst of the slump in the crypto market, where a number of leading cryptocurrencies such as BTC and ETH have experienced a significant decline in the last 24 hours. This decline has dragged down other crypto assets. Along with these conditions, the Ethereum Foundation, the entity behind ETH development, has recently reportedly sold more than a thousand ETH.

Based on recent on-chain data, it shows that the Ethereum Foundation has sold most of its Ethereum (ETH) holdings, amounting to 1,700 ETH, worth around $2.74 million (IDR 43.1 billion). This decision caught the attention of the crypto community because the Ethereum Foundation is an important organization in the Ethereum ecosystem.

What makes this sale interesting is that the Ethereum Foundation decided to convert the proceeds from the sale into USDC, a stablecoin whose value is associated with the US Dollar. Furthermore, they also received an additional 494 thousand USDC from the multisig wallet. This step may be taken to protect its value in the face of unstable market fluctuations.

Although the reasons are not explained in detail, the amount sold appears to be in line with the operational costs and research grants usually provided by the Ethereum Foundation. In 2021, the Ethereum Foundation spent around $448 million, including funding for development projects aimed at improving Ethereum infrastructure.

In the current unstable market situation, selling some ETH assets may be a way to maintain their operational funding. While these sales could affect the Ethereum Foundation reserves, they still have sizable assets.

The current price of ETH is trading around IDR 25 million per coin, with a drop of about 1.5% over the past 24 hours, according to CoinGecko data. This situation reflects the impact of market decline on large entities such as the Ethereum Foundation.