Ethereum Co-Founder Transfers $72 Million in ETH to Kraken

On November 28, Ethereum (ETH) co-founder Jeffrey Wilcke moved 20,000 ETH, valued at over $72 million, to the Kraken exchange. Despite this transaction, his wallet still contains 106,006 ETH.

Significant Transfers Throughout 2024

This recent transfer marks the fourth time Wilcke has sent ETH to Kraken in 2024, with the total exceeding $147 million. According to CryptoQuant analyst Maartunn, the first transfer occurred on February 10, involving 4,300 ETH worth $10.6 million. Four days later, he transferred 10,000 ETH, valued at $27.2 million. On May 22, another deposit of 10,000 ETH, equivalent to $37 million, was made.

Community Concerns Over Large Transactions

Ethereum’s co-founders and the Ethereum Foundation (EF) have faced significant scrutiny from the community this year. On August 23, the EF transferred 35,000 ETH to Kraken, a transaction valued at $94 million at the time. This raised concerns among investors due to the substantial amount involved.

In response, EF contributor Josh Spark and co-founder Vitalik Buterin explained the transfer's purpose was to support institutions that enhance Ethereum’s ecosystem. Data from Arkham revealed that EF-related wallets experienced negative net flows of nearly 45,000 ETH in 2024.

Vitalik Buterin Addresses Concerns

One week after the EF’s transfer, Vitalik Buterin explained a $10 million ETH deposit. He clarified that since 2018, none of his sales have been for personal profit. Instead, these transactions funded projects within Ethereum’s ecosystem and broader charitable initiatives, including biomedical research.

As of November 28, Buterin-related wallets reflect a year-to-date negative net flow of 6,000 ETH.

ETH Underperforms Against Major Cryptos

Investor unease is exacerbated by Ethereum's underperformance in 2024 compared to Bitcoin (BTC) and Solana (SOL). Data from Artemis shows Bitcoin and Solana have delivered approximately 116% returns this year, while ETH’s return is 51.5%, falling short of the crypto market’s average of 109%.