Golem report reassures no ETH dump after $337M transfers

Golem, a decentralized computing network, has addressed ongoing community concerns in its recent report following the transfer of over 135,000 Ether (ETH) to centralized exchanges (CEXs).

The Ether, worth around $337 million, was sent to CEXs like Coinbase, Binance and Bitfinex and sparked initial speculation of a large-scale sell-off.

The Sept. 18 Golem report reassured users that the transfer of 135,000 ETH was not for dumping but was instead part of a staking test to ensure operational security and minimize spam interference.

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Transfer concerns 

The ETH movements, first witnessed in July, triggered fear throughout the Golem community, particularly after Golem deposited 29,000 ETH to various CEXs in July.

Fear-induced frustration began to rise on social media platforms like the project’s Discord, triggering debates in which community members questioned CEX involvement in a solo staking process.

Community members accused the team of being evasive and avoiding direct answers about the movement of the funds, which worsened after the Golem team promised to answer later.

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Solo staking test details

In the report, Golem clarifies that the ETH movements were part of their solo staking to ensure that the operation remained uninterrupted and unhindered throughout the process.

The team also noted that using CEXs allowed them to establish “a controlled environment” for the process and reduce the potential “risk of interference from external transactions.”

“Our objective was to create a controlled environment where we could monitor the impact of various factors on the staking-related processes.“

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Delayed communication consequences

Despite Golem’s reassurances in its latest Sept. 18 report, the lack of transparency left the community with a lasting impression.

One X user who followed the community concerns reiterated the report’s clarification that the ETH funds were not dumped but noted that “honest comms could have avoided this from the start.”

On Sept. 2, the user reminded his followers that the report was promised in August, but no report was published, further impacting the negative speculation by the community.

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