Joseph Lubin-Linked Wallet Ignites Ethereum Dump Fears After $121M ETH Transfer

A wallet linked to one of Ethereum’s co-founders has moved more than $121 million worth of ETH for the first time in over three years, and it could not have come at a worse time for market sentiment. The transfer comes at a sensitive moment for ETH, which reacted by falling to a yearly low of $1,537 in the past 24 hours before recovering slightly back above $1,640 at the time of writing.

Joseph Lubin-Linked Wallet Moves 80,001 ETH After Three Years

Blockchain analytics platform Lookonchain flagged a notable transfer on June 6, noting that a wallet associated with Joseph Lubin, the co-founder of Ethereum and chief executive of Consensys, moved 80,001 ETH valued at $121.6 million following more than three years of complete dormancy. 

Before Lookonchain highlighted the activity, the wallet held 243,300 ETH worth around $370 million. However, the movement did not stop with the initial 80,001 ETH transfer. Data from Arkham Intelligence shows that another 30,000 ETH was moved out of the same wallet after Lookonchain’s post, bringing the total outflow to 120,000 ETH within a short period. At the time of writing, the wallet’s remaining balance is at 133,000 ETH, meaning nearly half of the ETH previously held in the address has now been transferred out. 

The sudden reactivation of the wallet set off alarm bells across crypto social media at a time when Ethereum has already shed about 47% of its value since the beginning of the year. Ethereum has already been trading under pressure in June, and a large movement from a wallet associated with one of the network’s earliest and most visible figures naturally led to panic from other Ethereum traders.

Some Whales Buy The Dip While Others Head Out

Following the outflows from Lubin’s wallets shows that the cryptocurrencies eventually entered into a DSProxy wallet. While the intentions as to the transactions can be debated, other large holders have been making their moves with more clarity. 

For instance, Longling Capital, a wallet known on on-chain tracking platforms for its pattern of buying low and selling high, deposited 10,000 ETH worth $15.68 million to Binance, according to Lookonchain. The move to a centralized exchange can be easily interpreted as a precursor to selling from the whale address.

However, not every whale is in a selloff mood. One Ethereum OG who sold 60,000 ETH and 9,442 wstETH at approximately $2,040 just a week earlier has already begun buying back the cryptocurrency. Over the past two days, that whale spent $55.8 million to accumulate 35,723 ETH at an average price of $1,563 and may not be done yet, according to Lookonchain data.

Featured image from Unsplash, chart from TradingView