As Bitcoin and altcoins attempt to recover from steep declines, investors are facing massive liquidations.
At this point, while the general decline in the market is expected to deepen even further, the Ethereum Foundation is also at risk of liquidation.
Accordingly, the Ethereum Foundation now faces a major financial risk after locking a large amount of ETH in a MakerDAO vault.
According to Lookonchain’s post, the Ethereum Foundation has 100,394 ETH (worth $182 million) deposited into Maker, and the liquidation price is around $1,127.06.
While speculations about the liquidation risk of the ETH Foundation continue, it was claimed that a wallet thought to belong to the Ethereum Foundation deposited 30,098 ETH to take precautions against the possible decrease in ETH and increase the liquidation risk level.
However, two well-known Ethereum developers, eric.eth and sassal.eth, stated in a statement on X that the address that deposited 30,098 ETH to Maker was not the Ethereum Foundation address.
Later, Chinese crypto journalist Wu Blockchain clarified the incident in a statement, saying that the address at risk of liquidation was more likely to belong to an early ETH investor and not the Ethereum Foundation.
“While this address received a 4M DAI transfer from the Ethereum Foundation ETH Sale in May 2022, its transaction behavior and initial ETH funding trace back to jonny.eth (0xb76), suggesting it is more likely an early Ethereum investor rather than the Foundation itself.”
*This is not investment advice.