Massive Dormant Ethereum Linked To Genesis And Poloniex Moved, Selloff Incoming?
While FUD related to Genesis and Barry Sibert’s DCG continues to rise, large amounts of dormant Ethereum linked 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 a tweet on December 19 revealed that 2 dormant addresses have transferred almost 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.
On-chain analytics platform Lookonchain reported also 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 almost 13,105 ETH and 9,878 ETH, respectively.
The old addresses are now just valued at $57.32 and $25.81. Moreover, the new addresses only have Ethereum that were transferred on Sunday. The movement of dormant crypto assets has generally followed by a selloff of those assets in the next few days.
Ethereum price is currently trading at $1,182, down nearly 6% in a week. The negative market sentiment and Binance FUD caused massive selloffs in the last week. Analysts believe Ethereum price can rebound to over $1,300 again from $1,070. It will also depend on Bitcoin holding the $16.5 support level.
DCG’s Genesis and Grayscale 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 selloffs.
Crypto experts Andrew Parish and Adam Cochran noted that if DCG is selling cryptocurrencies in small batches, it could be the early stage of DCG insolvency. Moreover, DCG could dissolve Grayscale’s GBTC and EETH. This indeed risks insolvency for Grayscale. According to data by Coinglass, GBTC is trading at a discount premium rate of -48.79% and EETH at a discount premium rate of -52.58%.
Also Read: Bitcoin, Ethereum May Witness Deeper Correction
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