Ether Regains $3,000 Amid $100 Million Golem Moves – DiarioBitcoin
By Hannah Perez
An Ethereum ICO wallet, Golem, has been sending $100 million worth of ETH to centralized exchanges in recent weeks, adding selling pressure to the market.
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- Golem Wallet Has Been Moving $100 Million In ETH To Exchanges
- Golem was one of the first ICOs that existed on Ethereum, it was launched in 2016
- ETH rose in price by just over 2% this Monday despite whale movements
Ethereum (ETH) reclaimed the key $3,000 mark on Monday after plunging toward multi-week lows in line with a broader slump across the rest of the cryptocurrency market.
The second-largest cryptocurrency by market capitalization yesterday hit a low of $2,838, not seen since mid-May, amid a widespread bearish correction. ETH, which has lost 12% in the week, rose modestly in the morning hours to recapture the $3,000 level.
Bearish price action for Ether of recent weeks occurs in the midst of whale movements.
Golem sends $100 million of ETH to the exchanges
Golemone of the first initial coin offerings (ICO) that existed in Ethereumhas been moving close to $100 million worth of ETH over the past few weeks, data from Arkham Intelligence.
ICOs became a popular way for new cryptocurrency projects to raise funds in 2016 and 2017, but became less common as regulators around the world tightened their rules and after many of them turned out to be fraudulent. Many countries banned ICOs at the time.
The USD $100 million in ETH moved by Golem represent a significant portion of the funds raised by the project during its ICO in November 2016.
According to data from Arkhamthousands of ETH were sent from the wallet identified as belonging to Golem to other addresses, which then sent them to various centralized exchanges, including Binance, Bitfinex, Coinbase and others. Most of these transactions are under $10 million in value and are sent daily, he noted. CoinDesk.
ANDIn the last three days, about 26,000 ETH worth approximately USD $79 million left the main wallet Golem. It is estimated that many of these coins moved with selling intent, which has possibly been adding downward pressure to the market; although the team Golem has not publicly confirmed this theory.
Golem GLM was promoted as a marketplace for computing power, where users can rent out their unused computing resources in exchange for native GLM tokens. It is now working on artificial intelligence (AI)-based tools. GLM is currently trading at $0.31 with a market cap of $315 million, according to data.
Bearish pressure in the crypto market
ETH showed signs of recovery despite these alleged sales made by Golem.
The cryptocurrency market has faced downward pressure over the past few weeks, due to a number of factors including the distribution of bitcoins of the missing exchange Mt. Goxsales of Bitcoin from the German government and the expectation of an interest rate cut amid economic uncertainty in the United States.
Bitcoin ETH dipped below $55,000 yesterday as part of a loss of around 10% on the week, before a modest recovery this Monday above $57,000. ETH meanwhile is hovering around $3,050 at the time of writing, up 2.5% on the day, according to data from CoinMarketCap.
Article by Hannah Estefanía Pérez / Bitcoin Diary
Picture of Unsplash
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