20h35 ▪ 6 min read ▪ by Luc Jose A.
Summarize this article with:
An old Ethereum address transferred 6369 ETH to Kraken after acquiring these tokens around 14 dollars nine years ago. Their value now reaches nearly 16 million dollars, but the reported yield of 17786% will only be actually cashed if the assets are sold.
In brief
- An Ethereum whale transferred 6369 ETH to Kraken, for a value close to 16 million dollars.
- Bought around 14 dollars nine years ago, these ETH show a potential gain of 17786%.
- This transfer does not necessarily mean that the investor sold their cryptocurrencies and cashed in their gains.
- The movements of these historic holders attract attention, but their impact on the Ethereum price remains limited at this stage.
The 6369 ETH were transferred to Kraken
The wallet tracked by Lookonchain deposited 6369 ETH on the Kraken platform on October 14. At the time of the transfer, the tokens were worth around 15.95 million dollars, based on a price near 2504 dollars per ether.
The address is said to have acquired these ETH nine years ago for an average price of only 14 dollars. The initial cost of the position can therefore be estimated at about 89166 dollars.
The ratio between the current value and the initial capital reaches nearly 179. After deducting the initial investment, the potential gain approaches 15.86 million dollars, or about 17786%.
This calculation shows the extent of Ethereum’s appreciation since 2017. However, it depends on two assumptions: the address actually bought the tokens at the indicated price and their owner can sell them near the price used for the estimate.
The public blockchain data allow transfers between wallets to be tracked. They do not always identify with certainty the person, company, or group that controls an address.
A deposit on an exchange does not prove a sale
Sending tokens to a centralized platform generally constitutes a potential selling signal. Investors often transfer their cryptos to an exchange to convert them into dollars, stablecoins, or other assets.
However, this operation does not demonstrate that the 6369 ETH have already been sold. Their holder can keep them on Kraken, use them as collateral, stake them, or execute an over-the-counter transaction.
The yield of 17786% remains therefore theoretical as long as no sale is visible or confirmed. If the investor gradually sells their ETH at a lower price, their final gain will be lower. An additional increase would have the opposite effect.
The figure also does not take into account possible transaction fees, Kraken commissions, and taxes applicable to the holder. These costs would remain low compared to the gain, but they prevent considering the estimate as a net profit.
It is therefore appropriate to speak of a potential gain or unrealized capital gain at the time of the deposit, and not of a definitively cashed profit.
The first ETH holders take their profits
This transaction joins several movements observed among early Ethereum investors. At the end of September, another address inactive for nearly nine years had begun selling a position acquired in 2017.
This wallet had bought 3000 ETH at an average price of 18.80 dollars, for an initial investment of 56500 dollars. It then sold 2000 tokens around 3096 dollars on average and kept the remaining 1000 ETH.
In January, an address inactive for nine years also transferred 135284 ETH to Gemini. These tokens, accumulated around 70 to 90 dollars, were worth nearly 397 million dollars at the time of their movement.
These sales do not necessarily constitute a collective bearish signal. Historic holders can secure part of their gains after several years without questioning their confidence in the network.
Their very low acquisition price also allows them to sell with a significant capital gain, even when ETH is far from its historical peak.
Selling pressure the market must absorb
Ethereum trades around 2500 dollars after briefly hitting nearly 2400 dollars this week. The token remains weakened by outflows from certain ETFs, the decline of the ETH/BTC ratio, and general caution on risky assets.
A sale of 6369 ETH represents about 0.005% of the network’s total supply. This volume remains modest on the scale of Ethereum and should not, by itself, sustainably change the price.
The impact mainly depends on the method used. An immediate sale on the order book exerts more pressure than a split operation or an over-the-counter deal with an institutional buyer.
Whale movements attract attention because they can indicate a change in behavior among long-term holders. However, a single wallet is not enough to establish a general trend.
This transaction mainly illustrates the performance realized by some early investors. It also reminds us of an essential nuance: the blockchain confirms the movement of ETH, but not the identity of their owner nor the definitive realization of the reported gain.
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Luc Jose A.
Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.