Golem, an Ethereum-based project, has recently transferred more than $100 million worth of ether (ETH) to various exchanges. This movement of funds could potentially create additional selling pressure in the market for the cryptocurrency.
Golem initially gained attention during the ICO boom of 2016, when it raised millions of dollars to support its decentralized computing platform. Despite ongoing efforts to develop AI tools, the value of Golem’s token has significantly declined from its peak.
According to data tracked by Arkham, Golem’s main wallet has been moving large amounts of ETH to other wallets, which are then being sent to popular exchanges like Binance, Bitfinex, and Coinbase. These transactions, most of which are under $10 million, are occurring on a daily basis.
Independent journalist Colin Wu was the first to report on Golem’s wallet activities. However, Golem has not provided any public statements regarding these transfers or any upcoming product launches.
Golem’s focus on AI-based tools comes at a time when this sector is gaining increased attention from traders and investors. The project’s roadmap, released in May, highlights its commitment to developing innovative AI solutions.
Typically, transferring tokens to exchanges indicates an intention to sell, as holding large amounts of assets on an exchange for an extended period can pose security risks. Golem’s recent movements of funds suggest that some stakeholders may be liquidating their holdings.
In 2016, Golem raised over $8.7 million through its ICO, positioning itself as a platform where users could rent out their computational resources in exchange for GLM tokens. However, the project’s popularity has waned, with the token now trading at just 30 cents and a market cap of $300 million, down from its peak of $1.32 in January 2018.