Ethereum ICO Participant Golem Network Dumps $13.6M ETH

After reassuring users in September 2024 that it was not dumping Ethereum (ETH), Ethereum ICO participant Golem Network has reportedly resumed its selling spree. The leading decentralized computing network transferred 4,850 ETH from one of its associated wallets to top liquid exchanges, Binance and Coinbase.

Binance Receives 3,800 Ethereum 

Noteworthy, the developer team working on the project performed the transfers to the two exchanges in nine separate transactions. All the transactions occurred on February 20 between 15:46 (UTC) and 18:19 (UTC). ETH traded at $2,818.08 at press time after recording a 3.26% increase within the last 24 hours, per CoinMarketCap data. 

This price level sums the computing network’s Ethereum dumping to over $13.6 million. 

A major portion of the assets went to Richard Teng-led Binance. The digital asset service provider received up to 3,800 ETH, worth $10.7 million. Blockchain analytics platform Arkham Intelligence claimed that the other 1,050 ETH, valued at approximately $2.9 million, was moved to a Coinbase wallet address. 

No ETH Dump, Just Solo Staking With CEX

Five months ago, the Ethereum ICO participant moved 2,000 ETH to the American cryptocurrency exchange Coinbase in five transactions. Markedly, this was the last time that the project made such a transfer to a centralized exchange. At the time, users were concerned about CEX’s involvement in a solo staking process. 

In response, Golem Network explained to these concerned users that it wasn’t dumping the second-largest cryptocurrency by market. Instead, it claimed that the transfers were all part of a staking test to ensure operational security. 

“Our objective was to create a controlled environment where we could monitor the impact of various factors on the staking-related processes,” the team wrote.

Golem Network’s ETH Dump Could Trigger Selling Pressure 

Historically, such huge transfers of tokens to exchanges are usually followed by sales into USDT. At other times, they are swapped to other digital assets. Whatever the case, a sell-off of this size could trigger market pressure and a downtrend in the price of ETH. However, this is highly dependent on the speed of liquidation.

Though yet to be confirmed, Ethereum allegedly saw a sharp plunge around the time of the nine transactions from Golem to Binance and Coinbase. From trading around $2,764 an hour before the transaction, the ETH price went down to $2,708 just a few minutes after the first set of funds moved to Binance. 

Judging by the current price of the altcoin, there has been some price recovery for Ethereum. 

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