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The Golem network was one of the first initial coin offerings (ICOs) to emerge on the Ethereum network, dating back nearly eight years. But last month, an address linked to the protocol sent more than $100 million worth of ETH to exchanges, according to journalist Colin Wu.

The volume is quite high and could cause further selling pressure in the market. According to Coinglass, ETH fell 14.36% last week, its worst weekly performance in 2024.

ICO mania

ICOs have been a popular way to raise funds to build cryptocurrency projects. Their name comes from the acronym for an initial public offering (IPO). And just like an IPO, ICOs have launched a number of projects over the past decade.

The first ICO in history was carried out by Mastercoin in 2013, even before the launch of Ethereum. But it was this network that made ICOs take a huge leap in popularity, especially between 2016 and 2019.

However, they lost their appeal among investors in the following years. Regulators began to crack down and file lawsuits against ICOs, and the market lost credibility after a series of frauds.

Data tracked by Arkham shows that Golem’s main wallet transferred millions of ETH to other wallets, which then sent the coins to exchanges like Binance, Bitfinex, Coinbase, and others. The vast majority of transactions are under $10 million.

Independent journalist Colin Wu first reported on the Golem wallet’s movements. However, the official Golem X protocol profile did not confirm the information. In fact, the project has not publicly revealed any major releases or developments.

Novo hype

Even with the failure of ICOs, Golem remains active in the market and is working on tools based on artificial intelligence (AI). A roadmap released in May contains the latest updates to the protocol.

Sending cryptocurrencies to exchanges usually implies the intention to sell, especially in large quantities. Therefore, the market was concerned that the project would put even more downward pressure on ETH.

Golem raised over $8.7 million in ETH in 2016 when it launched its ICO. At the time, the project launched with a narrative of “decentralized computing,” a hot topic at the time. It positioned itself as a marketplace for computing power, where users could rent out their unused computing resources in exchange for GLM tokens.

But its popularity has since waned. GLM hit an all-time high of $1.32 in January 2018, but is currently worth just $0.30. Its market cap is $300 million.

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