The Interchain Foundation, responsible for the Cosmos (ATOM) ecosystem, has ramped up its sales of Ethereum (ETH) acquired during its initial coin offering (ICO). Recent on-chain records reveal that the foundation offloaded 3,000 ETH, equating to roughly $10.16 million, within just one hour. Since late April, a total of 21,600 ETH, worth around $55.97 million, has been sold from the holdings amassed during the ICO in April 2017.
What Are the Consequences of ETH Sales?
The Interchain Foundation’s ETH disposals are under scrutiny in the cryptocurrency arena. These transactions were conducted at an average price of $2,591. Currently, the foundation retains a portfolio that includes 383 BTC and 23,587 ETH, with an estimated total asset value of about $95.48 million.
Will ATOM Recover from Its Price Decline?
In spite of these transactions, ATOM’s performance has been disappointing. At the end of 2022, when Bitcoin was valued around $16,000, ATOM traded near $10. Presently, it hovers around $6.50, reflecting a substantial depreciation. This drastic drop has caused unease among stakeholders in the altcoin market.
The weak performance of ATOM raises several important points:
- Interchain’s conversion of ICO funds into cash may impact investor confidence.
- ATOM’s struggles contrasted with Bitcoin’s recent price rally have sparked community discussions.
- Market participants are speculating about the potential for ATOM’s price recovery following the ETH sales.
As developments unfold, the community remains vigilant regarding the impacts of Interchain Foundation’s sales strategy on the Cosmos ecosystem and ATOM’s market performance.
