Vitalik Buterin Denies Selling Ethereum Holdings
Ethereum co-founder, Vitalik Buterin, has responded to circulating rumors suggesting that he sold a large portion of his Ethereum (ETH) holdings. Buterin clarified that since 2018, he has not sold ETH for personal gain. Instead, any ETH he has sold was either for contributions to the Ethereum ecosystem or for charitable purposes such as biomedical research and development.
Reported ETH Transfers to Exchange
Despite Buterin's statements, reports indicate that he recently transferred $10 million worth of ETH to a cryptocurrency exchange. According to Arkham Intelligence, a total of 422,000 ETH, valued at approximately $1.04 billion, has been moved from an address linked to Buterin between 2015 and September 1, 2024. Notably, 840,000 ETH has been transferred out of this address over the past two years.
On August 30, a user on X (formerly Twitter) claimed that Buterin offloaded $2 million worth of ETH following a bullish tweet. Lookonchain confirmed that 3,000 ETH was sent to the same address on August 9.
Ethereum Foundation's Periodic Liquidations
Interestingly, these events coincide with the Ethereum Foundation's own ETH transfers. In August, the Foundation moved 84,000 ETH—equivalent to $207 million—to a crypto exchange. These transfers align with the Foundation's periodic liquidations meant to fund ongoing development, research, and key projects within the Ethereum ecosystem. However, experts caution that large sales of this nature can lead to short-term selling pressure in the market. For instance, a 2021 transfer by the Foundation of 20,000 ETH to Kraken preceded an 85% market correction.
Buterin on Decentralized Finance and Grants
Recently, Buterin highlighted that $8.4 million in grants were awarded to projects within the Ethereum ecosystem last quarter. He expressed support for projects like the betting platform Polymarket and stablecoins USDC and RAI. Conversely, Buterin criticized business models reliant on liquidity farming, deeming them unsustainable long-term. He remarked, "Things that I don’t respect are things whose attractiveness comes from some temporary source that has no sustainability."
Reacting to claims that Ethereum undervalues Decentralized Finance (DeFi), Kain Warwick, the creator of yield farming, argued that Buterin underestimates DeFi's importance. Despite differing views, Buterin remains a pivotal figure in the blockchain community.
Ethereum Market Reaction
As of the latest data, ETH is trading at $2,508, a 4% decline over the past week. This market reaction reflects the community's mixed sentiments amidst ongoing developments and revelations about key figures like Buterin.
