An Ethereum whale, identified as Ethereum OG, moved $500 million USDT into Stable’s vaults minutes before its official announcement, sparking controversy and renewed debate over insider access within Ethereum’s decentralized finance ecosystem. On-chain data from Lookonchain revealed that the transaction originated from an address holding 736,000 ETH, valued at approximately $2.92 billion.
The whale collateralized 300,000 ETH on Aave to borrow the USDT, a deposit that constituted 64.5% of the total deposits in Stable’s $775 million pool. This significant deposit occurred at 8:48 a.m. Beijing time, a full 22 minutes prior to Stable's official announcement of its pre-deposit phase at 9:10 a.m. The timing of this transaction has drawn considerable attention and criticism within the crypto community, with many alleging it to be a clear instance of “rat trading,” a term used to describe privileged pre-access to token launches.
Community Questions Fairness and Transparency
Stable’s pre-deposit allocation was reportedly sold out within seconds of its public launch, leading to widespread frustration among retail participants. On-chain analysts have estimated that over 70% of the total deposits were made before the official announcement. This has fueled accusations within the community that large on-chain players may have received advance information regarding the event.
Stable, a Layer-1 project designed around its innovative vault-based ecosystem, garnered substantial interest during its initial phase. The $825 million allocation cap was met almost instantaneously, preventing smaller investors from participating. Critics are calling on the project to release detailed transaction logs to provide clarity on whether specific addresses gained early access.
While Stable has not yet issued an official statement regarding the incident, it has already drawn comparisons to previous DeFi controversies involving early vault access and pre-mined tokens. Some observers perceive this as a recurring pattern that erodes trust in the decentralized finance space.
On-chain data platforms Arkham and Nansen have joined the ongoing investigation, monitoring the whale’s Aave borrowing transaction and subsequent vault interactions. The address in question is recognized as one of Ethereum’s oldest and most valuable users, having been active since 2015. Its recent activity has reignited discussions about ethics and transparency in decentralized launches.
ETH Price Holds Firm Amid Whale Movements
Despite the ongoing controversy, Ethereum’s price has maintained a steady position above $3,900, after briefly reaching $4,100 earlier in the week. Following a short test of resistance, the asset has returned to its current trading range. For the majority of the past week, ETH has been consolidating below the significant psychological mark of $4,000.
Current technical patterns suggest the formation of an ascending wedge, which could influence the short-term price direction. A decisive breakout above $4,100 may pave the way for further upward movement towards $4,500 and beyond. Conversely, a decline below $3,700 could potentially trigger a more substantial correction, with the price possibly moving towards $3,400.
Institutional borrowing and whale activity continue to indicate sustained confidence in Ethereum’s long-term stability, notwithstanding the current market volatility. According to Santiment data, wallets holding between 10,000 and 100,000 ETH have been consistently accumulating. In contrast, smaller holders have reduced their positions by nearly 140,000 ETH over the past week.
Nevertheless, Ethereum’s technical setup remains structurally bullish. The recent surge has reinforced Ethereum’s medium-term upward trajectory, establishing $3,800 as new support.