3-Year-Old Dormant Ethereum Wallets Awaken
On-chain tracking firm Lookonchain reported that numerous Ethereum wallets, which had been inactive for 3.3 years, began to move substantial amounts of ETH earlier today. A now-deleted post from Lookonchain initially suggested that these wallets might have moved over 700,000 ETH.
Further investigation revealed that these funds were traced back to an address associated with the PlusToken Ponzi Scheme. In 2020, Chinese authorities seized 833,083 ETH, valued at approximately $2.11 billion, during a crackdown on this fraudulent crypto trading platform.
The Ethereum wallets that recently became active were linked to an address labeled “Plus Token Ponzi 2.” This address had previously dispersed 789,533 ETH from the seized assets to various addresses but had remained inactive since April 2021.
The news raised concerns among crypto investors about potential selling pressure that could impact Ethereum and its market recovery. However, new details have clarified the situation, leading to the deletion of the original report.
Is ETH’s Selling Pressure Over?
On-chain data analyst EmberCN provided updated information, indicating that the actual amount of ETH available for sale is considerably smaller than initially feared. The analyst noted that most of the original 789,534 ETH was transferred to the now-collapsed crypto exchange Bidesk between June and September 2021.
According to EmberCN, a substantial portion of the ETH transferred to Bidesk was subsequently moved to Huobi and sold in 2021. In the last 30 hours, the analyst tracked around 12 Ethereum addresses holding PlusToken-related ETH. These wallets collectively contain 25,757 ETH, worth approximately $63.1 million.
Some of this ETH was not transferred to Bidesk in 2021 but was withdrawn from Bidesk and not sent to Huobi. EmberCN concluded that the current movement represents only a small portion of the unsold PlusToken-related tokens.
Despite these clarifications, Ethereum experienced a 6.5% drop in the last four hours, potentially linked to Jump Trading’s recent sell-off. Lookonchain reported that the Chicago-based trading firm sold an additional $29 million worth of ETH today and redeemed $48.2 million in preparation for a sale on Wednesday morning. Jump Trading still holds 21,394 wstETH, valued around $63.6 million.
As of now, ETH has fallen from a range of $2,500-$2,540 to approximately $2,370, reflecting a 6.8% decline in the daily timeframe and a 28.3% drop over the past week.
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