FUD continues to rise in relation to Barry Sibert’s DCG and Genesis, but large amounts of dormant Ethereum linked with Poloniex and Genesis were moved in the past 24 hours. The dormant addresses have transferred 22,982 ETH from two old wallet addresses.
Ethereum Originated From Genesis and Moved After 5 years
PeckShieldAlert tweeted December 19 that 2 dormant addresses had transferred nearly 22,982 Ethereum worth 27.2 Million to 2 new addresses. This Ethereum was created by Poloniex and Genesis in 2016 and 2018. The last Ethereum movement in wallet addresses occurred in October 2018.
The history of Ethereum transfer from Poloniex and Genesis. Source: PeckShieldOnchain analytics platform Lookonchain also reported that 2 addresses that had been inactive for 5 years, became active on Sunday and transferred 22,983 Ethereum. These addresses now have nearly 13,105 ETH and 9,878 respectively.
The old addresses are now valued at $57.32 & $25.81, respectively. The new addresses have only Ethereum that was transferred on Sunday. Generally, the sale of crypto assets that are currently inactive has followed the movement of these assets.
Ethereum is currently trading at $1.182, down almost 6% in one week. Massive selloffs occurred in the last week due to negative market sentiment and Binance FUD. Analysts believe that Ethereum’s price could rebound to $1,300 from $1,070. It will also depend on Bitcoin maintaining the $16.5 support level.
DCG’s Genesis & Grayscale Under Insolvency risk
Last week, Crypto Twitter reported that cryptocurrencies linked to Barry Silbert’s Digital Currency Group, such as Filecoin and Flow, Stacks. Livepeer, Ethereum Classic. Decentraland, among others, saw huge selloffs.
Andrew Parish and Adam Cochran, crypto experts, noted that DCG could be selling cryptocurrencies in small quantities. This could indicate early stages of DCG’s insolvency. Grayscale’s GBTC or EETH could also be dissolved by DCG. Grayscale could be insolvent if this happens. According to Coinglass data, GBTC trades at a discount rate of -48.79% while EETH trades at a discount rate of -52.58%.
Also read: Bitcoin may witness deeper correction
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