The Ethereum Foundation Sold At The Top Again. Did They Know Something We Didn’t?

Apparently, the Ethereum Foundation employs incredible traders. Once again, they managed to cash out at the very top. On November 16th, ETH was worth an all-time high of $4891. On the very next day, the Ethereum Foundation sent 20,000 ETH to Kraken and sold them. Is this suspicious at all? Not per se, but this is the second time that they pull the same magic move. 

Related Reading | Why The Ethereum Foundation Launched A Client Incentive Program

A professional trader that goes by the name Edward Morra on Twitter was the first to spot the trade. “Friendly reminder that ETH foundation cashed out at the top (again). ETH down 40+% since then,” he said. Morra also provided a chart that shows ETH’s sharp decline in price since the sale.

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To add insult to injury, the Ethereum Foundation only paid $20 in gas fees. That might be the most impressive feat of them all.

At the time of writing, the Ethereum Foundation’s wallet holds 353,318 ETH, which is approximately $835K at current prices.

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What Do We Know About The Organization’s Previous Sell-Off?

Back to Morra, his Twitter followers told him that this information was of no use to them this late in the game. The trader surprised the world and pulled an ace up his sleeve. As it turns out, Morra tweeted about the trade at the time it happened. Not only that, he warned them, “They cashed out 35k ETH on 17th of May this year, marked on the chart.”

As you can see on the chart, on May 17th the price of ETH was near its previous peak. And after the Ethereum Foundation sold, ETH trended down for months and months. Is this a coincidence? Does the foundation employ great traders? Or, is there something else to this story? Did they dump on retail ETH holders? Did the Ethereum Foundation know anything that the rest of the world didn’t?

At the time of the first sell-off, journalist Colin Wu highlighted the trade and said, “The Ethereum Foundation transferred 35,000 Eth to the Kraken Exchange on May 17. Vitalik said bubbles could have ended already on May 20.” Analyzing the move, Wu said, “This is a normal operation, but it also means that the Foundation thought that bear market is coming.”

The gas fee for this operation was 0.00240474 ETH, or $5.66 at the time of writing. Wow.

ETHUSD price chart for 01/25/2022 - TradingView

ETH price chart for 01/25/2022 on Bitfinex | Source: BTC/USD on

What’s The Ethereum Foundation Anyway?

According to Ethereum’s official site:

“The EF is not a company, or even a traditional non-profit. Their role is not to control or lead Ethereum, nor they are the only organization that funds critical development of Ethereum-related technologies. The EF is one part of a much larger ecosystem.”

The Ethereum Foundation distributes funds to developers via the Ecosystem Support Program and the Fellowship Program, organizes Devcom, and more. To do all that, they surely need Fiat currency in some capacity. The trade makes sense from that angle.

Related Reading | Ethereum Foundation Devs Discuss ETH2 Launch & Economics

The question, though, is, did they know that a crash was coming? And if they did, did they reach that conclusion through technical and on-chain analysis or by… other methods?

Featured Image by PatriestB on Pixabay | Charts by TradingView


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Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users

It seems UK users will soon be unable to access Monero on one of the leading crypto exchanges. There have always been concerns around the Bitcoin competitor regarding the absolute privacy that the digital asset confers. Until now, it remains impossible to track/trace Monero transactions, making it the ultimate privacy coin, and governments are worried that individuals will use this to evade taxes.

Another concern is around the use of the cryptocurrency as a criminal tool, although there is no definitive way to tell if this is true. However, it remains high enough on the list of concerns that even countries where cryptocurrencies are not illegal are clamping down on the cryptocurrency. The latest is the UK as regulations have pushed Kraken to remove access for its citizens.

Delisting Monero Over Regulations

In an email sent out to users that were posted on Reddit, Kraken outlines the reason for the delisting. The email explained that the crypto exchange was trying to be in compliance with UK regulations and as such, it will no longer be supporting Kraken (Payward Ltd) on its platform. The delisting will happen in a week and will affect trading activities around the privacy coin.

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Related Reading | Cardano Leads Altcoins As Market Marks 13th Consecutive Week Of Inflows

Kraken announced in the email that as of November 26th, UK users will no longer be able to trade Monero (XMR) on the platform. All trading activities will cease including Instant Buy/Sell Services, order book trading on the XMR/BTC, XMR/USD, and XMR/EUR pairs.

In addition to halted trading services, UK users will also not be allowed to fund their balances with Monero on the exchange after November 26th. However, users will be able to withdraw all of their current Monero balance to other wallets or exchanges.

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Monero price chart from

XMR trading at $234 | Source: XMRUSD on

Margin trading is also affected and will slowly go into effect. On November 23rd, UK users will no longer be able to increase their Monero margin positions on the exchange but they can reduce it. Three days after, on November 26th, the exchange will force liquid all open margin positions and cancel all open orders.

In closing, the Kraken team said; “We appreciate your understanding and we apologise for any inconvenience caused. Should you have any questions, please do not hesitate to contact our support team.”

Why The Crackdown?

Monero is one of the few cryptocurrencies that manage to confer absolute privacy to their investors. This has made it the coin of choice for investors who want to be in control of their own money. As this Reddit user eloquently puts it, it’s “One of the few coins that truly makes your money your own. Security without compromising privacy, something that was unheard of only a few years ago.”

Related Reading | New Record For Bitcoin Lightning Network As Adoption Grows

Monero is a cryptocurrency that has maintained the privacy component behind the creation of cryptocurrencies. It puts the investor in complete control and makes it impossible for a third party to interfere or see where the funds are going, and since governments cannot track it, then they cannot tax it. Hence the crackdown on privacy coins to limit their use by residents.

Featured image from Kraken Blog, chart from


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California Court Orders Kraken Exchange to Reveal Identities of Users who Have Transacted in Crypto

Kraken users who might have failed to comply with their tax obligations may no longer have a hiding place. This is because a Federal Court in the Northern District of California has given the United States Internal Revenue Service (IRS) the authorization to serve a John Doe summons on Kraken and its parent company, Payward Ventures Inc. 

Per the Press Release from the Department of Justice, the IRS wants to obtain the information of Kraken users who have transacted as much as $20,000 worth of cryptocurrency from 2016 to 2020, all in a bid to fish out those who have not properly complied with accurate tax reporting standards.

While the exchange has not been indicted for wrongdoing, the John Doe summon is simply an order that seeks to get specific information, such as those within the stipulated class range of $20,000.

“Gathering the information in the summons approved today is an important step to ensure cryptocurrency owners are following the tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”

Per the release, besides obtaining details on Kraken customers, the IRS will also gain access to documents that will reveal how well Kraken has been complying with best practice policies in its broader trading operations.

For the past few years, the IRS has been solidifying its efforts to crack down on tax evaders, employing private tax contractors to help in this campaign. The digital currency ecosystem is known for its big gains, and with a solid plan to increase the capital gains tax across the board, the IRS’ efforts to clamp down on defaulting tax filers continues. 

The IRS scare has resulted in tax lawyers warning Coinbase users to accurately report their transactions, which is better than getting on the wrong side of the law.

Image source: Shutterstock


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