Ethereum Founder Responds to Major Drop in ETH Value

September 02, 2024 06:13 PM AEST | By Team Kalkine Media

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Ethereum Founder Responds to Major Drop in ETH Value — Image source: shutterstock

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In the cryptocurrency sector, Ethereum co-founder Vitalik Buterin's recent on-chain activities have caught the attention of the community, particularly those closely following the second-largest cryptocurrency. Buterin's ongoing Ethereum sell-offs have led to discussions about his perspective on the asset's future.

Ethereum Sales Raise Questions

Throughout August, Buterin sold 5,000 ETH, a move that has been met with scrutiny. Specifically, on August 27 and 30, Buterin transferred a total of 1,000 ETH into a multi-signature account, prompting speculation about his intentions and long-term stance on Ethereum (ETH). This is part of a larger pattern, as Buterin has been gradually reducing his stake of the cryptocurrency. He initially received a significant amount of ETH from the project’s pre-mine event, totaling 700,000 ETH.

Currently, on-chain data reveals that Buterin holds 240,171 ETH, roughly 44% of the amount he had in 2021. His actions have sparked debate within the Ethereum community, with some members questioning whether his reduced holdings indicate a shift in his view of Ethereum's long-term potential.

Concerns Over Buterin’s Sales

Buterin's continued ETH sales have raised concerns among some community members about his commitment to the project. Observers have noted that Buterin and other Ethereum core developers have not actively promoted ETH as a store of value or programmable money, adopting a more reserved stance. One community member highlighted that this cautious approach was evident even before regulatory discussions around Ethereum's classification by the U.S. Securities and Exchange Commission (SEC) began.

Buterin’s Clarification on ETH Sales

Amid the ongoing speculation, Buterin addressed the community via social media platform X. Responding to queries on Saturday, he clarified that his sales were not for personal gain but were instead intended to support various projects on the Ethereum network and other blockchain initiatives. He also mentioned that some of the proceeds were directed toward charitable donations.

Buterin emphasized that he has maintained his Ethereum holdings since 2018, holding a significant portion of his portfolio in ETH, which he cited as evidence of his belief in the asset's fundamental value. He previously stated that while he does not view Ethereum strictly as a store of value, his actions reflect confidence in its broader potential.

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