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Ethereum ICO Participant Moves $9.96 Million Of ETH To Kraken. Will He Sell?

An Ethereum initial coin offering (ICO) participant and one of the earliest supporters of the smart contract platform has moved 6,000 ETH worth $9.96 million to Kraken, a cryptocurrency exchange, recent data from Lookonchain on September 18 reveals.

The unidentified whale received 254,908 ETH when each traded for 40.31 during the crowdfunding in 2014. This amount is currently worth over $466 million at spot rates.

ETH whale transfer: Etherscan

Ethereum Whale Transfers Over $9.96 Million To Kraken

The anonymous nature of public blockchains, including Ethereum, makes it harder to decipher the owner’s identity. Determining whether an entity or an individual controls the address is also more complex. 

Whale transfers to a crypto exchange are usually considered bearish since the ramp provides an easier swapping option for token holders to cash out. Typically, crypto whales have the potential to impact the market due to the sheer size of their holdings.

Accordingly, their trading decisions can influence prices, increasing volatility. Therefore, the recent deposit to Kraken may suggest that the whale plans to sell, taking a profit.

On the brighter side, the whale could be moving their coins via an intermediary, in this case, Kraken, before transferring them to other platforms like Rocket Pool or Lido Finance for staking. 

In the current proof-of-stake consensus algorithm used by Ethereum, whales can earn annual staking rewards if they lock at least 32 ETH. While the whale can set up a node and stake, liquidity staking providers like Rocket Pool allow users to stake coins and earn staking rewards using their infrastructure. 

As of September 18, there are over 804,000 validators, that is, users who have locked at least 32 ETH operating an Ethereum full node. Cumulatively, over 25.7 million ETH have been locked.

Validator count:Beacon.in

ETH Prices Recovering

As of this writing, the transfer on September 18 is amid the broader recovery in the crypto market. Of note, Ethereum (ETH) prices are up roughly 6% from September lows. Overall, supporters are bullish, expecting more growth in the days ahead.

The pump also means bulls have reversed some of the losses of September 11, and the current formation may anchor the next leg up that could propel the coin above $1,750, or August 29 highs, and later peel back sharp losses recorded on August 17. 

Ethereum price on September 18| Source: ETHUSDT On Binance, TradingView

From the candlestick arrangement in the daily chart, ETH remains under pressure, dropping 23% from 2023 highs of around $2,140.

However, since bears didn’t reverse losses of the June to July leg up, buyers have a chance following the rejection of lower lows from around the 78.6% Fibonacci retracement level of the Q3 2023 trade range. Presently, the September and August 2023 lows remain critical support levels for ETH, with the retest of August 17 lows on September 11 causing concern for optimistic traders. 

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Dogecoin Proof Of Stake Discussion Heats Up As Lead Dev Chimes In

Dogecoin Lead Developer, Mishaboar has expressed his doubts about a possible move to a Proof of Stake (PoS) blockchain consensus. The developer has stated that the transition to a POS mechanism is not a “sensible approach” and has highlighted several issues that could develop from the change.

Mishaboar Objects To PoS Transition

Mishaboar took to social media on August 20, to express his concerns about the potential impacts a PoS transformation could have on Dogecoin’s network and decentralized nature. In a recent Twitter post, he staunchly refuted the transition and stated that if the conversion pulls through, he may leave Dogecoin for another cryptocurrency network with a PoW consensus. 

“If this refers to a remote possibility of Doge ever switching to PoS, after what I have seen over the past 2 years, I would probably then move to another PoW crypto and customize the logo in my wallet to have a dog in it,” Mishaboar commented in a Twitter post. 

Mishaboar has highlighted the possibilities of power imbalances that could result from a PoS switch since a significant amount of a cryptocurrency’s supply is controlled by exchanges. 

He stated that the change to a PoS consensus could increase the control and influence of exchanges over a network. The developer also pointed out that Dogecoin may face increased regulatory challenges with the transition. 

Furthermore, Mishaboar explained that cryptocurrencies that have transitioned to a PoS consensus have been overhyped, with most falling short of expectations and failing considerably or becoming so centralized that it contradicts the foundational structure of cryptocurrencies which is in its decentralized system. 

Mishaboar concludes that transitioning into a PoS consensus does not align with Dogecoin’s futuristic goals and objectives. He mentioned that the benefits of a PoS consensus which is fast transactions can easily be achieved in the Dogecoin network with other solutions like integration of multiple payment channels.

Dogecoin price chart from Tradingiew.com

PoS Versus PoW Consensus For Dogecoin Ecosystem

The broader cryptocurrency community is presently at loggerheads on the merits of a PoS and PoW consensus and Mishaboar’s rejection of a possible Dogecoin transition has sparked debates about the future of Dogecoin cryptocurrency among crypto enthusiasts. 

Proof of Work (PoW) and Proof of Stake (POS) are two distinct blockchain consensus mechanisms used to validate transactions and improve the general performance of a blockchain network. And these two consensuses have their different advantages and disadvantages. 

The advantages of a PoS are seen in its energy conservation and fast transactions. In contrast, a PoW consensus is considered more secure and more decentralized but is energy-intensive. 

Some crypto investors argue that a PoS consensus would offer greater energy utilization and scalability. Whereas, others have sided with Mishaboar, strongly refuting the idea of centralization and security risks that follow a PoS transition.

Mishaboar has been a prominent part of Dogecoin’s development, yet recent statements made by the enigmatic figure have led to speculations about the impact his rejection of Dogecoin’s possible PoS consensus could have on the project’s direction and development.