Golem Network starts staking ETH after transferring and selling large amounts, supporting ecosystem growth and the Ethereum decentralization efforts.
The Golem Project, known for its decentralized computing platform, has embarked on Ethereum (ETH) staking, dedicating a substantial amount of its reserves to the cause. This decision comes after a series of large transactions involving ETH deposits and sales by the project.
Citing blockchain data, Lookonchain revealed that Golem recently transferred 40,000 ETH (valued at $124.6 million) to a specific address hours ago, marking the start of its staking endeavors.
Golem(@golemproject) appears to have stopped selling $ETH, and he staked 40,000 $ETH($124.6M) 8 hours ago.https://t.co/JLwB4bmBtQ pic.twitter.com/HzizTZ01YG
— Lookonchain (@lookonchain) July 11, 2024
This transfer followed the deposit of 3,000 ETH ($9.3 million) to major exchanges Binance, Bitfinex, and Coinbase. Notably, Golem has been active over the past week, depositing 29,000 ETH ($88.9 million) to these exchanges.
Before these activities, the Golem team sold 24,400 ETH ($72 million) over three days, indicating a significant reallocation of its crypto assets.
Recall that in November 2016, the project raised 820,000 ETH during its Initial Coin Offering (ICO) when the price of ETH was just $10.2. Today, with Ethereum’s price at $3,122.64, the project’s holdings have substantially increased in value. Currently, Golem holds 80,034 ETH worth $249 million.
Official Statement on Staking
In a recent blog post, Golem Network outlined its reasons for initiating ETH staking. The project aims to support its future growth and development by generating yield from staking.
These funds will be used for operational activities, ecosystem development, and increasing awareness of Golem’s decentralized computing capabilities.
This shift in investment strategy from the Golem Network occurs amidst a broader trend of significant crypto asset sales. The German government recently began selling 50,000 BTC in small batches since June 19.
Additionally, Mt. Gox, which collapsed in 2014, holds 138,985 BTC, worth about $7.96 billion, and has started repayments. This wave of asset liquidation has raised questions within the crypto community, with platforms like Nansen inquiring about potential upcoming large-scale sales.
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