Decision to Stop Selling Ethereum by Vitalik Buterin – What’s the Reasoning?
Vitalik Buterin, the creator of Ethereum, has announced that he will no longer engage in selling off his Ethereum holdings. This declaration follows recent criticism directed at him after he sold $441K worth of ETH on September 12th.
In response to the backlash, Buterin clarified that the sell order was prearranged back in August and assured the community that it was the final one, stating:
“The recent sale conducted by a bio-defense group I support was triggered by an automatic Cowswap twap order that was established on August 29. That marked the conclusion of such transactions.”
Buterin’s Selling Strategy and Criticism
It is important to note that a twap strategy involves fragmenting a sizable order into smaller portions spread over a specific timeframe.
Buterin utilized this method to break down a significant ETH sell order into smaller segments to financially back the projects he endorses.
According to data from LookOnChain, Buterin’s associated wallet, responsible for selling 190 ETH on Thursday, has liquidated a total of $2.28 million worth of ETH since August 30th.
In essence, Buterin divided a $2.28 million ETH sell order into more manageable parts to support various projects; he has emphasized that he hasn’t profited personally from these sales, highlighting that all proceeds have been allocated to causes he supports.
Nevertheless, some members of the community believe that they are being used as an exit strategy to fund Buterin’s altruistic endeavors, leading to a negative sentiment towards ETH and potential losses for investors.
One frustrated user expressed discontent with Buterin’s repeated sell-offs, stating:
“ETH is currently facing significant criticism, possibly the worst in years, and your actions of selling during a downtrend are hindering the efforts of your supporters. ETH holders should not be seen as a constant source of funding for your charitable endeavors.”
This sentiment has been prevalent among the community in recent days due to Buterin and the Ethereum Foundation’s substantial ETH sell-offs.
Interestingly, the sentiment surrounding ETH turned negative towards the end of August, coinciding with Buterin’s selling spree.
The general negative sentiment could also mirror the overall conditions of the cryptocurrency market. However, the negative sentiment surrounding ETH could impede its potential for a robust recovery.
According to Arkham data, Buterin still holds 240K ETH, valued at over $500 million. The cessation of sell-offs, as promised, remains to be observed.
Currently, the price of ETH struggles to surpass $2500 despite a recent relief rally. It has nullified all gains made this year but has maintained support above the 2024 lows of $2200.