Jeffrey Wickle, a co-founder of Ethereum recently sold off 92,000 ETH worth about $11 million. While he had intended for the transaction to be anonymous, he inadvertently revealed his identity when he used the Ethereum Name Service domain. He made the transaction on Christmas day when he moved the ETH to Kraken from an address that was funded by the Ethereum Foundation development wallet. The coins were from the pre-mined batch of coins.
The Ethereum Name Service Dilemma
When the transaction was analyzed, it was found that the root address registered in the Ethereum Name Service. This system makes it possible to turn the long Ethereum address into a human-readable name. However, this might be a problem for privacy. Most people who use the service, link the address to a real name and twitter handle. This can lead to a loss of privacy and makes it easier to be targeted by hackers. As demonstrated by the revelation that Jeffrey Wickle was behind the transaction.. simply by analyzing the wallet addresses.
When the revelation that Wilcke was behind the transaction was made, some in the Ethereum community were not happy. For instance, Richard Burton, who worked at the Ethereum Foundation for two months, tweeted that people who did little were awarded thousands of ETH. On the other hand, people who did the donkey work were paid very little. He concluded his tweet by saying that Wilcke should use his funds to help Ethereum.
In response, Wilcke tweeted that he worked hard to create Ethereum until he burned out and was unable to continue. Not everyone was critical of him. Some felt that as a founder of Ethereum, he deserved the huge payoff and it should not be an issue of discussion.
Wilcke and Ethereum
Wilcke was part of the core group of developers that created Ethereum. He worked with others such as Anthony Di Iorio, Vitalik Buterin, Mihai Alise, and Joseph Lubin. Most of his work was around the G-based Ethereum client called Geth.
Those who co-founded Ethereum were paid quite well. In total, 72 million ETH was created. OF this, 60 million was put up for sale, the rest went to the development fund, and some were divided up amongst the contributors. Vitalik Buterin was given about 630,000 ETH while Wilcke was given around 463,000 ETH. The decision by Wilcke to sell off his ETH did not seem to have had an impact on the price of ETH.
Protecting Identities While Dealing in Crypto
Staying anonymous while dealing in crypto is an issue that needs to be taken seriously. In the future, the Ethereum Name Service might have to come up with measures to ensure people’s identities are protected. Users themselves could also avoid using their real names or twitter handles. With the recent rise in hacks targeting the crypto market, it is important to avoid being traced as much as they can. However, it is likely that Wilcke already has measures in place to keep himself safe from crypto hackers.
Image Source: Flickr / Alpari Org
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.
