Ethereum Foundation and Vitalik Buterin’s Ethereum / ETH Sales

In late 2017 and early 2018, during Ethereum’s all-time high price surge, Vitalik Buterin advised the Ethereum Foundation (EF) to sell 70,000 ETH, which netted the organization approximately $100 million at the peak price of around $1,400 per ETH. Buterin himself sold an estimated 30,000 ETH, bringing him around $22 million, highlighting the significant financial decisions made by the foundation and its co-founder during that period.

More recently, in 2024, the Ethereum Foundation has continued to liquidate its ETH holdings. For instance, in September 2024, the Foundation sold 3,766 ETH, amounting to approximately $10.46 million. These sales were noted to be part of a strategic treasury management approach, converting ETH to DAI, a stablecoin pegged to the US dollar, to manage operational costs and fund development projects.

Additionally, in October 2024, the Foundation sold 4,066 ETH, valued at just over $11 million. This move was justified by Buterin as a means to fund essential projects like zero-knowledge technology for privacy, account abstraction for user security, and supporting global Ethereum events. These sales have been part of a broader strategy to avoid market influence associated with staking large amounts of ETH, which could centralize decision-making in contentious network events like hard forks.

Vitalik Buterin has also been active in selling ETH in smaller, strategic portions throughout 2024. For example, on September 30, 2024, he sold 649 ETH, contributing to a total of 749 ETH sold in conjunction with the Ethereum Foundation over the past 24 hours, which was valued at about $1.98 million. These sales have been criticized by some in the community as potentially bearish signals, although Buterin has clarified that his ETH holdings have actually increased over recent months, suggesting these sales are more about strategic financial management than personal profit.

Buterin has also defended the Foundation’s sales, emphasizing that these funds are used to support development and operational expenses rather than being for personal gain. He has specifically addressed claims of ‘dumping’ ETH, explaining that such transactions are managed to minimize market impact via methods like limit orders.

The sales from both Buterin and the Ethereum Foundation have sparked discussions on their potential to affect ETH prices. While some view these sales as bearish signals, others interpret them as necessary for the sustainability and further development of the Ethereum ecosystem. The community has been vocal, with some expressing concerns over the timing and volume of these sales, especially in light of market volatility. However, there’s also acknowledgment that these sales are conducted in a manner to support the broader goals of Ethereum’s development and decentralization.