Ethereum Co-Founder Buterin Addresses ETH Sell-Off Concerns, Emphasizes Investments in Promising Projects

Ethereum creator Vitalik Buterin faced backlash following his recent ETH sales, with critics questioning his motives and impact on ETH prices. Buterin’s sale of over $2 million worth of ETH drew ire from some ETH holders and traders.

One vocal critic, crypto trader CoinMamba, condemned Buterin for selling his holdings shortly after expressing optimism about Ethereum. The lack of communication from Buterin further fueled the community’s discontent.

In response to the criticism, Buterin defended his actions, asserting that his ETH sales are directed towards supporting valuable projects. He clarified that all proceeds from his sales since 2018 have been channeled into projects within the Ethereum ecosystem or broader charitable endeavors like biomedical research and development.

Reports indicate that Buterin currently holds around 240k ETH, valued at approximately $600 million. He disclosed receiving about 700k ETH from a pre-mine three years ago, shedding light on his substantial ETH holdings.

Speculation within the community suggests that Buterin’s ongoing sales of ETH may be contributing to a decline in ETH’s value and overall sentiment. Despite this, crypto analyst Ansem came to Buterin’s defense, highlighting his pivotal role in creating one of the most significant projects in crypto history and justifying his profit-taking actions.

The Ethereum Foundation also faced scrutiny for selling 35k ETH, prompting calls for its dissolution. However, the Foundation’s recent expenditure report aimed to address concerns and dispel fears, potentially alleviating the fear, uncertainty, and disinformation (FUD) surrounding Ethereum’s sentiment.

Additionally, interest in U.S spot ETH exchange-traded funds (ETFs) has waned, with flows dwindling to nearly zero within a month of launch. This shift in demand coincided with ETH trading near $2.5k, having stabilized around that level after a retreat from its recent peak of $2.8k.

The developments surrounding Buterin’s ETH sales, the Ethereum Foundation’s transparency efforts, and the evolving landscape of ETH ETFs collectively shape the narrative around Ethereum’s trajectory and community sentiment.