Coinbase Cold Wallet Stir: Rumors and Misinformation Surround Significant Ethereum Transfer

On June 13, 2023, several individuals discovered a significant transfer of Ethereum (ETH) that had remained dormant for a few years. While the observers believed the funds were being deposited into Coinbase, they shared this information on social media to highlight the unusual occurrence. However, despite the speculation, it was soon clarified that the transfer was simply an internal Coinbase transfer from a cold wallet.

Blockchains Never Lie: The Truth Behind the Ethereum Transfer Hype

Amidst the volatility and unpredictability in the cryptocurrency community, numerous observers closely monitor onchain transactions using tools such as the Whale Watch alert system and other monitoring systems. On June 13, 2023, a Twitter account known as “Napgener” posted a summary regarding the movement of approximately 1.5 million ETH that had been accumulated in 2016 and recently transferred. The tweet read, “This guy accumulated 1.5 million ETH in August 2016 … Just sent 450K to [Coinbase].

Similar to a game of telephone, the tweet from Napgener was subsequently shared by the owner of the “Dirty Bubble Media” account. “Yeah this is weird,” the account tweeted. “Accumulated 1.5 million Ether in 2016-2017. 12/1/2018, transfers all 1.5 million. [The] Ether [is] then broken into 37.5K Ether chunks and sent to cluster of wallets. Funds re-aggregated into 150K chunks, where they sit untouched. Until now.” However, numerous individuals were quick to highlight that the funds were merely transferred between cold wallets or as part of an internal transaction.

A straightforward search on Ethereum-compatible blockchain explorers such as Etherscan, Blockchair, Nansen, and Arkham Intelligence reveals that the transfer was an internal transfer, originating from a Coinbase cold wallet. This incident serves as another instance where rumors propagate without individuals verifying the information through blockchain sources. A similar situation occurred with the well-known “1P5ZED” bitcoin address.

Moreover, the “1P5ZED” bitcoin address was repeatedly mentioned in unfounded, entirely fabricated narratives, such as attempts to falsely link the holdings to Microstrategy. The following day, the well-known Twitter account Dirty Bubble Media acknowledged the widespread assumption that the transfer originated from a Coinbase cold wallet.

“People sharing that this is Coinbase cold storage … that’s certainly plausible. Ok … but whose Ether is it … and why is it moving now? Because it isn’t Coinbase corporate funds based on their 10Q/10K,” the account asked. In response to the tweet, individuals promptly urged the account owner to acknowledge their error. “Just admit you messed up,” stated the Twitter account Umbrella in a direct reply.

The incident serves as yet another illustration of rumors spreading rapidly during times of uncertainty. Dirty Bubble Media’s initial unverified tweet garnered 67 retweets and received 439 likes from Twitter followers. With a total of more than 58,000 Twitter followers, the account’s significant following contributes to the swift dissemination of information akin to a game of telephone. A similar situation where rumors spread happened a few months ago with the Silk Road stash of coins held by the U.S. government.

What are your thoughts on the rapid spread of rumors and misinformation in the cryptocurrency community? Share your thoughts and opinions about this subject in the comments section below.

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