The Ethereum Foundation, a profit organization that supports Ethereum and its associated technology recently revealed that they sold 1,700 ETH in exchange for USD Coin (USDC). According to Scopescan a data provider the foundation converted approximately $2.76 million worth of ETH into USDC through an Uniswap transaction. This information has been confirmed by Arkham Intelligences data.
CoinMarketCap shows a decrease in the value of Ethereum with a 0.56% decline in the last hour a 3.8% drop over the past day and a 6.66% decrease over the week. While it is not certain if this sale directly caused the price dip it is worth noting that Ethereums value continued to decline after the transaction took place.
Many individuals on Twitter have expressed concerns about this move as it may be seen as a signal. Some question why the foundation chose to exchange their ETH for a stablecoin. However it is important to consider that there could be reasons to market predictions behind this decision by the Ethereum Foundation. For example they may have had obligations requiring payment in USDC.
Following this sale there was also a transfer of $3.23 million worth of USDC, to Safe (formerly known as Gnosis Safe Protocol) which’s a decentralized asset management platform built on top of Ethereum.