DeFi and NFT founder @0xfoobar tweeted that there were rumors about Ethereum being insolvent and withdrawals of all staked ETH being disabled.
hearing rumors that ethereum is insolvent, withdrawals are disabled for all staked eth
— foobar (@0xfoobar) November 15, 2022
Moreover, in the Twitter thread, Foobar shared another tweet that seems to reveal the root cause for the insolvency of staked Ethereum. According to the post, Alameda Research spent all its funds on venture capital investments and other expenditures, and due to this staked ETH, withdrawals were disabled.
The post read:
The so-called “beacon chain” which was unfortunately also run by Alameda research. they spent it all on venture capital investments, among other expenditures.
When some crypto users were more interested in knowing and identifying the anonymous beacon chain, some users criticized the post.
Subsequently, one crypto-Twitter user replied to the above post saying:
Most people misunderstood this thinking it’s called a beacon chain when the actual name is Bankman chain.
Meanwhile Ethereum is at $1,268.95 with a 24-hour trading volume of $12,260,973,728.
Looking at the seven-day chart of Ethereum, it seems that the price has been moving sideways rather than moving up and down. However, the price reached a maximum of $1,334 on November and fell to $1,087 on November 10.
Apart from the above-mentioned fluctuation, the price of Ethereum has been moving sideways.