Ethereum Co-Founder Jeffrey Wilcke Transfers $75.2M Worth of ETH to Kraken, Sparking Market Correction Speculation

On-chain data showed that Wilcke sent 20,000 Ether (ETH) to the California-located centralized crypto exchange Kraken.

A large cryptocurrency transaction has sparked speculation about a possible market correction, as Ethereum co-founder Jeffrey Wilcke transferred $75.2 million worth of Ether to Kraken.

On-chain data showed that Wilcke sent 20,000 Ether (ETH) to the California-based centralized crypto exchange on Nov. 11, according to blockchain tracker LookOnChain. The motivation for Wilcke’s move was not immediately clear, but an exchange deposit usually signifies a plan to sell the tokens.

Community members pointed out that Wilcke’s past transactions have sometimes preceded declines in Ethereum’s price. For example, on Jan. 6, 2021, Ethereum’s price fell after Wilcke deposited 15,000 ETH. Similarly, on Feb. 11 and Feb. 14, 2024, his movements of 4,300 ETH and 10,000 ETH, respectively, were followed by price drops.

However, Wilcke’s recent transaction still leaves him holding 106,006 ETH, valued at over $384 million, according to LookOnChain.

People close to Wilcke did not immediately respond to requests for comment. Kraken declined to comment.

Wilcke, known as "BurntSushiPro" in the crypto community, has been a key figure in Ethereum's development since its early days. He played a role in designing the blockchain's consensus mechanism and helped launch the network in 2015.

After stepping away from the project's core development team in 2017, Wilcke has continued to contribute to the Ethereum ecosystem through various initiatives, including operating nodes and participating in governance discussions.

His large ETH holdings and transactions have often attracted attention from traders and community members.

Meanwhile, Ethereum leaders and organizations selling ETH or making exchange deposits have drawn public ire. Earlier this year, the Ethereum Foundation's sale of 4,266 ETH, or over $12 million, prompted backlash from users who accused the foundation of profiting off its reserves.

The non-profit organization was criticized by users for allegedly profiting from its Ether reserves. ETH co-creator Vitalik Buterin clarified that the foundation sells portions of its holdings to fund initiatives and cover its operating costs.

The foundation's annual report revealed that the majority of its funds were allocated to supporting the Ether ecosystem or rewarding projects that aimed to advance the largest decentralized finance blockchain.

After the Nov. 6 U.S. general elections, Ether's price rose along with other cryptocurrencies. As the total crypto market capitalization surged to $3.4 trillion, ETH climbed to $3,550. The token was roughly 28% below its previous all-time high of $4,878.