Two major Ethereum transactions caught the attention of the community this Monday (5). While Vitalik Buterin transferred 400 ETH (R$3.6 million) to Kraken, Jeffrey Wilcke, also the co-founder of Ethereum, sent 22,000 ETH (R$200 million) to the same exchange.
The two moves took place this Monday (5), with an hour’s interval between them, on the same day the SEC sued Binance. In the process, several cryptocurrencies were classified as securities, but Ethereum was left out of the list.
Due to similarities between Ethereum and other projects mentioned in the lawsuit, such as Cardano, Solana, and Polygon, many expect Ethereum to face regulatory issues in the future as well.
Is Ethereum a Security?
In both the Binance and Coinbase lawsuits, the SEC has listed dozens of cryptocurrencies as securities.
Many descriptions were almost identical. Basically, the projects had a company behind them, conducted a pre-sale of the coins and the developers promised to accelerate the adoption of such cryptocurrency.
That is, Ethereum would also be suitable as security. Even Gary Gensler, chairman of the SEC, has already stated that ETH was a security, but others like Rostin Behnam, chairman of the CFTC, disagreed.
Now the discussion has resurfaced on social media. For example, Jack Dorsey, founder of Twitter, believes Ethereum is a security.
“Is ETH a security, Jack?”asked a follower.
“Yes”replied the founder of Twitter.
Yes. https://t.co/PrMx7yugsU
— jack (@jack) June 6, 2023
Since the SEC has not listed Ethereum alongside other cryptocurrencies in lawsuits against exchanges, there is a chance that the US CVM is preparing a special lawsuit against Ethereum, just like Ripple (XRP).
Therefore, the future of Ethereum looks uncertain in the hands of Gensler and his team. Taking XRP as an example, a legal dispute against the SEC could crash the price of ETH.
Founders are dumping Ethereum on the market
Perhaps anticipating the future, two Ethereum founders sent a large amount of ETH to exchange Kraken, possibly to sell their holdings.
While Vitalik Buterin, the main name of Ethereum, transferred 400 ETH (R$3.6 million), the move executed by Jeffrey Wilcke was much bigger. In total, the Ethereum co-founder sent 22,000 ETH to Kraken. The amount is equivalent to R$200 million.
Both transactions were executed on Monday (5), the day Binance was sued and several cryptocurrencies were classified as securities.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
