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Golem report reassures no ETH dump after $337M transfers

News Feed - 2024-09-25 05:09:00

Josh O"Sullivan10 hours agoGolem report reassures no ETH dump after $337M transfersGolem’s latest report explains the transfer of 135,000 ETH to CEXs as part of a staking test to ensure operational security.1826 Total views26 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onGolem, a decentralized computing network, addressed community concerns in a report following the transfer of more than 135,000 Ether to centralized exchanges (CEXs).


The Ether (ETH), worth around $337 million, was sent to CEXs, including Coinbase, Binance and Bitfinex and sparked initial speculation of a large-scale sell-off.


Golem’s Sept. 18 report reassured users that the transfer of ETH was not dumping but part of a staking test to ensure operational security and minimize spam interference.


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The ETH movements, first witnessed in July when Golem deposited 29,000 ETH to various CEXs, triggered fear throughout the Golem community.


Frustrations were expressed on social media platforms like the project’s Discord, triggering debates in which community members questioned CEX involvement in a solo staking process.


Community members accused the team of being evasive and avoiding direct answers about the movement of the funds, which worsened after the Golem team promised to answer later.


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In the report, Golem clarifies that the ETH movements were part of their solo staking to ensure that the operation remained uninterrupted and unhindered throughout the process.


The team also noted that using CEXs allowed them to establish “a controlled environment” for the process and reduce the potential “risk of interference from external transactions.”“Our objective was to create a controlled environment where we could monitor the impact of various factors on the staking-related processes.“


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Despite Golem’s reassurances in the report, the initial lack of transparency left a lasting impression.


One X user who followed the community concerns reiterated the report’s clarification that the ETH funds were not dumped, but noted that “honest comms could have avoided this from the start.”


On Sept. 2, the user noted that the report was promised in August, but was not published then, further impacting negative speculation by the community.


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