Ethereum founder Vitalik Buterin responded to concerns about ETH token sales by him and the Ethereum Foundation, which has repeatedly sold ETH for cash this year.
On-chain analyses have frequently highlighted periodic ETH movements from the Ethereum Foundation. For example, on October 15, the foundation sold ETH valued at approximately $258,000.
A week before that transaction, the foundation transferred ETH worth around $3.03 million to the Bitstamp exchange. According to on-chain analyst Lookonchain, the Ethereum Foundation has cashed out ETH valued at over $11 million since January.
These sales worry market participants, particularly as they often coincide with ETH bull runs. Vitalik Buterin had also joined in on this trend. Last month, a wallet related to him sold ETH worth more than $3.17 million.
Several community members believe that these transactions by Buterin and the Ethereum Foundation are contributing to ETH’s lackluster performance. Consequently, many have repeatedly called Buterin to “stop selling ETH.”
“I haven’t Sold a Single ETH” — Buterin
Buterin responded to these concerns today, clarifying that he has not sold any ETH tokens over the past month and even mentioning that his ETH holdings have grown.
I haven’t sold a single ETH in the past month? The amount of ETH I hold has actually gone up
— vitalik.eth (@VitalikButerin) October 25, 2024
Another commenter then sought clarification regarding the Ethereum Foundation, which sold over $3.3 million in ETH this month.
Ethereum Foundation is Funding Researchers and Developers with ETH Sales
Buterin explained that the Ethereum Foundation is funding researchers and developers responsible for several important advancements. These include measures to prevent Ethereum from losing 5 million ETH per year due to proof-of-work, maintaining low transaction fees, and ensuring that transactions are processed in under 30 seconds rather than taking 1 to 30 minutes.
bro the ETH foundation is paying researchers and devs that are responsible for
(i) ethereum not bleeding 5M ETH/year to proof of work
(ii) your fees being low today
(iii) your txs getting included in < 30s instead of like 1-30 min (eip 1559)show some respect
— vitalik.eth (@VitalikButerin) October 26, 2024
Additionally, the foundation is working on zk-tech that allows for private use of ETH, such as zk-railway. They are also developing account abstraction technology that enables everyday users to interact with ETH safely without needing seed phrases or risking centralized points of failure. The foundation organizes local ETH events worldwide, many of which do not prominently feature its name.
Furthermore, Buterin highlighted that Ethereum has maintained zero downtime from DoS attacks and consensus failures since 2016. The foundation has conducted various security initiatives, including internal development and grants, which have helped prevent numerous fund losses. Lastly, they provide libraries that support various coding needs, such as wallets and DeFi applications.
Amid this, Buterin called on community members to respect the Foundation’s efforts, rather than criticize its crucial sales.
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