Vitalik Buterin Responds to Concerns About ETH Token Sales by Him and the Ethereum Foundation

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.

Ethereum founder Vitalik Buterin has addressed concerns regarding ETH token sales by him and the Ethereum Foundation, following on-chain analyses that highlighted periodic ETH movements from the foundation.

On-chain analysis platforms, such as Footprint Analytics and Whale Alert, frequently identify and report on large cryptocurrency transactions. In the case of the Ethereum Foundation, several transactions have been noted throughout the year, involving millions of dollars worth of ETH being sold.

According to on-chain analyst Lookonchain, the foundation has cashed out ETH valued at over $11 million since January.

A recent analysis by Footprint Analytics also highlighted a transaction where the foundation sold ETH valued at approximately $258,000 on October 15.

Moreover, a week prior to that transaction, on October 8, an analysis by Whale Alert showed that the foundation had transferred ETH worth around $3.03 million to the Bitstamp exchange.

These sales, especially when coinciding with ETH bull runs, have drawn attention from market participants. Buterin himself had also joined in on this trend, with a wallet related to him selling ETH worth more than $3.17 million, as reported last month.

Several community members have expressed concerns that these transactions are contributing to ETH’s lackluster performance. Consequently, many have repeatedly called Buterin to “stop selling ETH.”

However, Buterin has now clarified that he has not sold any ETH tokens over the past month, even indicating that his ETH holdings have increased during this period.

I haven't sold a single ETH in the past month? The amount of ETH I hold has actually gone up

Another commenter then sought clarification regarding the Ethereum Foundation, which sold over $3.3 million in ETH this month.

Ethereum Foundation Funding Researchers, Developers with ETH Sales

Buterin went on to explain that the Ethereum Foundation is funding researchers and developers who are responsible for several important advancements.

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

Among these are measures that have prevented Ethereum from losing 5 million ETH per year due to proof-of-work, ensuring that transaction fees remain low, and enabling transactions to be processed in under 30 seconds rather than taking 1 to 30 minutes.

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 also organizes local ETH events worldwide, many of which do not prominently feature its name.

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 also provide libraries that support various coding needs, such as wallets and DeFi applications.

Amid this, Buterin has called on community members to show respect for the Foundation’s efforts, rather than criticizing its crucial sales.

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