After lying dormant for nearly eight years, a massive amount of pre-mined Ethereum has suddenly been transferred, raising questions about what it could mean for the future of the ETH price.
According to data from Etherscan, 61,216 ETH worth roughly $116 million at today's prices was accumulated during Ethereum's pre-mine period back in 2014 when each ETH token was priced at just $0.31. Since that time, Ethereum has seen monumental growth and value appreciation.
The ETH stash worth around $19,000 at the time sat untouched in a single wallet address from 2014 until recently when all 61,216 ETH were suddenly transferred to the Kraken cryptocurrency exchange in a single transaction.
Large deposits of cryptocurrencies to exchanges are often an indication that the owner intends to sell, which can potentially exert downward pressure on the price - especially if the amount being sold is significant relative to overall trading volume.
However, not every large exchange deposit necessarily signals an imminent sell-off, as the holder may decide to sell gradually over time to minimize impact on the market.
At the current time, the identity and motives of the wallet owner remain a mystery. The ETH price has increased slightly over the last 24 hours and remains steady at around $1,910, indicating that any potential selling from this stash has not yet begun - if it does at all.
The transaction serves as a reminder of the vast gains that can be achieved by HODLing cryptocurrencies for extended periods. What was an investment of just $19,000 in 2014 would now be worth over $116 million - a return of well over 600x in less than a decade.
For Ethereum investors, though large in size, this long-dormant wallet coming to life after 8 years serves as a cautionary tale of the potential market effects that could result once old cryptocurrency stashes that have remained untouched for years finally see their supply hit the market. Only time will tell if a sell-off materializes from this wallet and what impact, if any, it has on Ethereum's price trajectory going forward.
This article is based on the original news published on NewsBTC.