Wallets associated with Ethereum Co-Founder Vitalik Buterin and the Ethereum Foundation have reportedly begun aggressively selling Ether (ETH), adding pressure to the already fragile crypto market, particularly affecting ETH. This move has sparked concern among investors, especially given the current market instability.
Buterin reportedly transferred 3,000 ETH on August 9 and an additional 800 ETH on August 30 to a multisig wallet. Some users on platform X speculated that these ETH transfers were part of a personal sell-off for profit.
“Vitalik.eth (@VitalikButerin) moved 800 $ETH ($2.01M) to a multisig wallet just 40 minutes ago. Shortly after, the multisig wallet exchanged 190 $ETH for 477K $USDC. On Aug 9, #Vitalik also transferred 3,000 $ETH ($8.04M) to this multisig wallet.”
However, Buterin quickly clarified that he hasn’t sold any ETH since 2018. He explained that he allocated the proceeds from any ETH sales to various projects within the Ethereum ecosystem and philanthropic activities.
Buterin’s ETH Sales
Recently, on-chain data has revealed that the wallet receiving donations from Buterin has not held onto the ETH but rather sold a portion of the coins on the market.
On September 9, Spotonchain reported that the wallet linked to Buterin’s donations had carried out a series of sales, selling approximately 760 ETH worth 1.835 million USDC when ETH was trading around $2,414 per coin.
“The multi-signature wallet that got $ETH from @VitalikButerin is on a selling streak!
After receiving 3,800 $ETH ($9.99M) from Vitalik on Aug 9 and 30, it’s been cashing out, selling 760 $ETH for 1.835M $USDC at ~$2,414 per ETH. The most recent sale took place just 21 hours ago.”
Shortly after, Spotonchain data indicated that the Ethereum Foundation had sold 450 ETH, converting it into 1.029 million DAI tokens. The Ethereum Foundation has sold an estimated 550 ETH worth $1.28 million over the past four days at an average price of $2,324 per ETH
A source close to the Ethereum Foundation, as reported by NewsBTC, stated that these sales are part of a planned financial policy to manage operational costs, including grants and salaries. Aya Miyaguchi, the Ethereum Foundation’s Executive Director, explained that they need to convert some ETH into stablecoins like DAI to meet certain financial obligations.
These ETH sales are part of a broader liquidation trend in the crypto market. During the sale, the price of ETH briefly dropped to $2,150 before recovering to $2,338 at the time of writing. Over the past week, ETH has suffered a decline of more than 7%.
This situation has created uncertainty within the Ethereum community, raising concerns about the long-term impact of these sales, which could generate significant negative sentiment towards ETH.
Follow our Twitter : https://x.com/safubit
Read : Staynex Launches JetSET Pass: Here Are Its Benefits! (dinodapps.com)
