Massively Dormant Ethereum Linked to Genesis and Poloniex Moved, Sell Incoming?

While FUD related to Genesis and Barry Sibert’s DCG continues to rise, large amounts of dormant Ethereum related to Genesis and Poloniex were moved in the last 24 hours. The dormant addresses transferred 22,982 ETH to two new wallet addresses.

Ethereum originated from Genesis moved after 5 years

PeckShieldAlert in one chirping on December 19 revealed that 2 dormant addresses have transferred nearly 22,982 ETH worth 27.2 million to 2 new addresses. This Ethereum originated from Genesis and Poloniex in 2016 and 2018 respectively. Moreover, the last movement of Ethereum in the wallet addresses was in October 2018.

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Ethereum transfer history from Genesis and Poloniex
Ethereum transfer history from Genesis and Poloniex. Source: PeckShield

On-chain analytics platform Lookonchain also reported that 2 addresses that have been dormant for 5 years became active on Sunday and transferred 22,983 ETH. The two new addresses now have nearly 13,105 ETH and 9,878 ETH respectively.

The old addresses are now only valued at $57.32 and $25.81. Also, the new addresses only have Ethereum that was transferred on Sunday. The movement of dormant crypto assets has generally been followed by a sell-off of these assets over the next few days.

The Ethereum price is currently trading at $1,182, down nearly 6% in a week. The negative market sentiment and Binance FUD caused massive selling in the past week. Analysts believe the Ethereum price could return to above $1,300 again from $1,070. It will also depend on Bitcoin holding the $16.5 support level.

DCG’s origins and shades of gray under insolvency risk

Crypto Twitter last week reported that cryptocurrencies related to Barry Silbert’s Digital Currency Group such as Filecoin, Flow, Stacks, Livepeer, Ethereum Classic, Decentraland and others saw massive sales.

Crypto experts Andrew Parish and Adam Cochran noted that if DCG sells cryptocurrencies in small lots, it could be the early stage of DCG insolvency. Also, DCG can dissolve Grayscale’s GBTC and EETH. This actually risks insolvency for Grayscale. According to data from Coinglass, GBTC trades at a discount premium of -48.79% and EETH at a discount premium of -52.58%.

Also Read: Bitcoin, Ethereum May Witness Deeper Correction

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.

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