Ethereum (ETH) prices took a dive recently, dropping below $1800. This caused some panic, especially after a report suggested the Ethereum Foundation (EF) might be facing a huge liquidation risk.
The Lookonchain Report and the Initial Panic
An on-chain analytics service, Lookonchain, noticed a large transaction: a wallet deposited a massive 30,098 ETH (around $56 million at the time) into MakerDAO. This seemed to suggest the EF was trying to avoid liquidation by adding collateral to their MakerDAO vault. The liquidation price was calculated to be around $1,127. This sparked fears that the EF’s funds were in serious jeopardy.
The Twist: It Wasn’t the Ethereum Foundation After All
However, the story took a turn. Further investigation by Wu Blockchain, using data from Arkham Intelligence, revealed a different picture. The wallet in question, while having previously interacted with EF wallets, actually belonged to an early ETH investor, not the foundation itself. The large ETH deposit was likely a personal move to protect their own MakerDAO position during the market downturn.
The Real Story: An Early Investor, Not the Foundation
The early investor had received a small amount of DAI (a stablecoin) from the Ethereum Foundation in 2022, leading to the initial misidentification. But the bulk of the ETH in the wallet came from much earlier sources, confirming its independent nature.
The Bottom Line: No Imminent Danger
So, while the initial report was alarming, it turned out to be a case of mistaken identity. The Ethereum Foundation’s funds don’t appear to be at risk. The liquidation price for the MakerDAO vault remains at $1,127, but the connection to the EF is unfounded. The ETH price at the time of writing was around $1,925.
