- Utilized TWAP strategy for sales, dispersing large Ethereum amounts to fund projects without personal profit.
- Community concerned over repeated ETH sales, fearing use as liquidity for Buterin’s funded projects.
Vitalik Buterin, recently declared that he will no longer sell Ethereum, sparking widespread discussion within the cryptocurrency community. This decision follows a series of sales that led to significant discussions about the impact of such moves on the token’s value and community trust.
I take this seriously. Starting next year, I plan to only publicly mention (in blogs, talks, etc) L2s that are stage 1+, with *maybe a short grace period* for new genuinely interesting projects.
It doesn't matter if I invested, or if you're my friend; stage 1 or bust.
Multiple… pic.twitter.com/4cGxgsfmUc
— vitalik.eth (@VitalikButerin) September 12, 2024
Buterin’s most recent sale, disposing of $441,000 worth of Ethereum on September 12, was reportedly the last of a pre-planned series of sales set up on August 29.
He utilized a time-weighted average price (TWAP) strategy, which involves spreading a large sell order into smaller, less market-disruptive segments.
As we reported earlier on ETHNews, this method was employed to fund various projects that Buterin supports, emphasizing that the proceeds were allocated to initiatives he believes in, rather than for personal profit.
The repetitive nature of these sales has been a source of contention within the Ethereum community, with some stakeholders expressing concerns that they were being used to provide liquidity for Buterin’s philanthropic activities.
According to data from LookOnChain, the wallet associated with Buterin sold a total of $2.28 million worth of Ethereum since August 30. This sentiment has, in turn, contributed to a dampening of enthusiasm around Ethereum, coinciding with a broader downturn in market sentiment.
A wallet related to vitalik.eth(@VitalikButerin) sold 190 $ETH for 441,971 $USDC again 20 minutes ago!
The wallet received 3,800 $ETH($9.8M) from #Vitalik and has sold 950 $ETH($2.28M) at an average price of $2,396 since Aug 30.https://t.co/K6i8Wr8vZ3 pic.twitter.com/GgHvs3gxft
— Lookonchain (@lookonchain) September 11, 2024
Market reaction to Buterin’s sales has been palpable, with Ethereum’s weighted sentiment dipping into negative territory as per Arkham data.
This negative sentiment aligns closely with the timing of Buterin’s sales, underscoring the influence founders can have on their respective cryptocurrency markets.
Despite these sales, Buterin still holds approximately 240,000 ETH, valued at over $500 million, leaving the community to wonder about the potential future impacts on the market should further sales occur, despite his assurances to the contrary.
As of the latest updates, Ethereum continues to struggle to regain its previous highs, trading below $2,500, and has wiped out its gains for the year, though it still maintains a support level above $2,200. The community remains watchful, hopeful for stabilization and growth free from the pressures of significant sell-offs.
