WLF Project Cryptocurrency Transfers: Causes and Consequences
Date: 2025-02-05 Author: Henry Casey Categories: BUSINESS
These transactions attracted the attention of analysts, as they involved significant amounts and included various cryptocurrencies.
According to data from the Arkham analytics platform, on February 3, WLF wallets held more than $380 million in cryptocurrencies, including Ethereum (ETH), liquid staking tokens stETH, wrapped bitcoin WBTC, as well as TRX, AAVE, LINK, ENA, and stablecoins USDC and USDT. Ethereum made up the largest part of the portfolio, accounting for more than 50% of assets. However, by 13:00 on February 4, only $32.5 million remained in the project's wallets, mostly in stablecoins and TRX.
More than 90% of the tracked crypto assets purchased in late January were transferred to external addresses, including services such as Coinbase Prime and decentralized exchange CoW Protocol. Transfers were also made to newly created wallets on the Ethereum blockchain. However, there was no confirmation that these assets were sold or used for other purposes.
Before the transfers began, the project team posted a statement on X, in which they explained that they make regular cryptocurrency transfers to cover expenses and working capital needs, emphasizing that this is not a token sale, but a redistribution of assets as part of normal business activities.
Note that on the eve of the large transfers, Eric Trump, one of Donald Trump's sons, posted a message on X that now is a great time to buy Ethereum, adding: “Thank me later.” The post was later edited. Shortly after, Ethereum strengthened by 4%, but then its price returned to its previous level. At 2:30 PM on February 4, ETH was trading at around $2,760.
So while the WLF project's fund movements have caused some concern, the project team's official explanation pointed to their normal business practices.
