Crypto News

Cardano Inventor Front-Ran SundaeSwap Users? Research Casts Light

Over the weekend, a Reddit post accusing Charles Hoskinson, inventor of Cardano of front-running SundaeSwap users went viral. A pseudonym user said Hoskinson used a large amount of ADA to benefit from a price hike on the decentralized exchange native token, SUNDAE. Related Reading | Cardano Price Up And Down Amidst SundaeSwap Launch As one of the first DEX running on Cardano, there is a lot of hype around SundaeSwap. The ADA whale, according to the user, used his funds to queue jump other users and be one of the first to benefit from SUNDAE’s launch. The pseudonym user based the accusations on three alleged facts: a large SUNDAE order was placed before the DEX was deployed, a wallet with millions of ADA was created specifically for this event, the funds can be tracked to another wallet with “a billion of unstaked ADA” or an entity sitting at the top of the Cardano rich list. The pseudonym user claims the large transactions were linked to the inventor of Cardano after “about an hour clicking CardanoScan links”. The user provided a link of addresses related to his claims which can be viewed in the following link. In addition, the pseudonym user addressed the possibility of a crypto exchange or similar entity involved with the transaction rather than Charles Hoskinson by saying: I do not think any of the addresses in the chain of CardanoScan links below are exchange wallets. You can take a look through them and try to identify which you think is an exchange, but it looks to me they are regular wallets. Most of the addresses in the sequence have just a single input and single output, so it was easy to trace. Since IOHK, the company responsible for developing Cardano, was a key player on many of the projects or components on this network’s ecosystem, seems logical a large portion of ADA is linked back to them. However, the pseudonym user seems to believe that an important portion of the ADA supply in circulation can’t be linked to IOHK. Inventor Of Cardano Replies To Accusations The inventor of Cardano, Charles Hoskinson, replied to the accusations and to the Reddit post. Via his Twitter account, Hoskinson said: Had a look at the sundae Reddit posts that have been cropping up. It looks like the funds came from a Coinbase custody account that aggregates thousands of users. Later, Hoskinson shared a link to a full investigation conducted by Colin Edwards, a Quantitative Strategist at IOHK. Therein, he explains Cardano’s UTXO model and by using on-chain analysis tracks down the SundaeSwap frontrunner. Edwards posted the transactions that “jumped the queue” and the tools he employed to conduct his investigation. Ultimately, he concluded that a wealthy client probably using Coinbase Custody was behind the transactions. IOHK’s Quant said a subpoena, a product of a legal procedure, could identify the actor. He added: (…) practically all Ada is within 3 transactions of being on an exchange where it would have mixed with funds originating from IOHK. Having funds originating from IOHK deposited at a large custody company, along with funds from thousands of others, is a statistical certainty – not a smoking gun. Related Reading | Here’s What Cardano Founder Charles Hoskinson Wants For Christmas As of press time, ADA trades at $0.93 with a 9.2% profit in the last 24 hours. The 9th crypto by market cap seems to be following the general sentiment in the market as it bounces back from the lows amid Russia’s invasion of Ukraine.

Crypto News Ethereum

The Ethereum Foundation Sold At The Top Again. Did They Know Something We Didn’t?

Apparently, the Ethereum Foundation employs incredible traders. Once again, they managed to cash out at the very top. On November 16th, ETH was worth an all-time high of $4891. On the very next day, the Ethereum Foundation sent 20,000 ETH to Kraken and sold them. Is this suspicious at all? Not per se, but this is the second time that they pull the same magic move.  Related Reading | Why The Ethereum Foundation Launched A Client Incentive Program A professional trader that goes by the name Edward Morra on Twitter was the first to spot the trade. “Friendly reminder that ETH foundation cashed out at the top (again). ETH down 40+% since then,” he said. Morra also provided a chart that shows ETH’s sharp decline in price since the sale. $ETHFriendly reminder that ETH foundation cashed out at the top (again). ETH down 40+% since then — Edward Morra (@edwardmorra_btc) January 21, 2022 To add insult to injury, the Ethereum Foundation only paid $20 in gas fees. That might be the most impressive feat of them all. At the time of writing, the Ethereum Foundation’s wallet holds 353,318 ETH, which is approximately $835K at current prices. What Do We Know About The Organization’s Previous Sell-Off? Back to Morra, his Twitter followers told him that this information was of no use to them this late in the game. The trader surprised the world and pulled an ace up his sleeve. As it turns out, Morra tweeted about the trade at the time it happened. Not only that, he warned them, “They cashed out 35k ETH on 17th of May this year, marked on the chart.” Casual 20k ETH cashout by EthDev, sent to Kraken: cashed out 35k ETH on 17th of May this year, marked on the chart 👇 — Edward Morra (@edwardmorra_btc) November 11, 2021 As you can see on the chart, on May 17th the price of ETH was near its previous peak. And after the Ethereum Foundation sold, ETH trended down for months and months. Is this a coincidence? Does the foundation employ great traders? Or, is there something else to this story? Did they dump on retail ETH holders? Did the Ethereum Foundation know anything that the rest of the world didn’t? The Ethereum Foundation still holds 394,787 ETH, and Vitalik said he persuaded foundation to sell 70,000 ETH at the top of 2018 to support the work of developers. This is a normal operation, but it also means that the Foundation thought that bear market is coming. — Wu Blockchain (@WuBlockchain) May 21, 2021 At the time of the first sell-off, journalist Colin Wu highlighted the trade and said, “The Ethereum Foundation transferred 35,000 Eth to the Kraken Exchange on May 17. Vitalik said bubbles could have ended already on May 20.” Analyzing the move, Wu said, “This is a normal operation, but it also means that the Foundation thought that bear market is coming.” The gas fee for this operation was 0.00240474 ETH, or $5.66 at the time of writing. Wow. ETH price chart for 01/25/2022 on Bitfinex | Source: BTC/USD on What’s The Ethereum Foundation Anyway? According to Ethereum’s official site: “The EF is not a company, or even a traditional non-profit. Their role is not to control or lead Ethereum, nor they are the only organization that funds critical development of Ethereum-related technologies. The EF is one part of a much larger ecosystem.” The Ethereum Foundation distributes funds to developers via the Ecosystem Support Program and the Fellowship Program, organizes Devcom, and more. To do all that, they surely need Fiat currency in some capacity. The trade makes sense from that angle. Related Reading | Ethereum Foundation Devs Discuss ETH2 Launch & Economics The question, though, is, did they know that a crash was coming? And if they did, did they reach that conclusion through technical and on-chain analysis or by… other methods? Featured Image by PatriestB on Pixabay | Charts by TradingView