Is Golem To Blame For Ethereum’s Price Drop?

Ethereum’s price has taken a hit, dropping by about 25% since its peak in March. While the overall market slump and Bitcoin’s price drop are likely contributing factors, some believe a specific project might be responsible for Ethereum’s woes.

Golem: A Project With a Big Past and a Questionable Present

Golem, an Ethereum-based project that raised a whopping 820,000 ETH in its 2016 ICO, has been selling off its holdings recently. Crypto journalist Colin Wu reported that Golem has transferred over 36,000 ETH to major exchanges like Binance, Coinbase, and Bitfinex in the past month, totaling around $115 million.

On-chain analysis service Lookonchain revealed that Golem has sold a significant chunk of its ETH in the past few days alone, with a current holding of 127,634 ETH worth around $372 million.

Golem’s ICO was a major event in the early days of crypto. The project aimed to create a decentralized supercomputer by harnessing the computing power of users’ devices. However, Golem’s relevance has faded over time, with its token now trading at a fraction of its peak price.

Crypto Experts React to Golem’s Sell-Off

Crypto experts have been vocal in their criticism of Golem’s actions. Adam Cochran, a partner at CEHV, expressed his disappointment, stating that Golem sat on its ETH for years without contributing to the ecosystem. Jimmy Ragosa, an advisor at Sismo, sarcastically questioned the use of the millions of dollars earned from the sell-off.

Another expert speculated that Golem’s actions might be driven by insider knowledge, suggesting that the project knows something about the future of Ethereum.

Is Golem Really Affecting Ethereum’s Price?

While the exact impact of Golem’s sales on Ethereum’s price is unknown, it’s clear that the constant selling pressure has likely played a role in the recent slump.

It’s important to note that this is just one possible explanation for Ethereum’s price drop. The broader market conditions and other factors are also likely contributing to the decline.