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Ethereum co-founder Vitalik Buterin was recently in the news after withdrawing 760 ETH – a move that sparked speculation about what such external transactions to his wallet could do to the Ethereum market.
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The transactions are part of a broader trend that has seen wallets linked to Buterin and the Ethereum Foundation sell large chunks of their etherIt was this aggressive selling that added to the downward pressure on Ethereum’s price, which recently slipped to the $2,150 level before recovering slightly.
Vitalik Buterin: Withdrawal Details
The wallet has reportedly been selling since it received ETH from Buterin in two transactions on August 9 and August 30, totaling 3,800 ETH. Following the two transfers, the wallet sold 760 ETH for approximately $1.835 million, or roughly $2,414 per ETH.
The multi-signature wallet you got Ethereum from @Vitalik Buterin In series sale!
After receiving 3800 Ethereum ($9.99 million) from Vitalik on August 9 and 30, cashed out, 760 sold Ethereum For 1.835 million US Dollar/US Dollar At $2,414 per ETH. Last sale was just 21 hours ago. pic.twitter.com/ELcjpPSg4K
— Spot on Chain (@spotonchain) September 9, 2024
The latest sale took place just 21 hours ago and is part of a series of aggressive liquidations that have sparked speculation in the crypto community.
Buterin has even been accused of “dumping” his Ethereum holdings, which he has always publicly denied, claiming that the money goes to support development of the Ethereum ecosystem and charity. While he was reassured, the continued sales of wallets attributed to him have contributed significantly to the growing bearish sentiment among investors.
Broader market impacts
This sale is not a solo activity by Buterin; Ethereum Foundation It is also known for selling massive amounts of ETH. According to reports, it has sold over 3,066 ETH this year alone.
Such sustained sales have raised questions about the health of the entire Ethereum market. According to analysts, such sales, coupled with significant reductions in the number of shareholders, have made life difficult for Ethereum, which is struggling to maintain its value.
In addition to Buterin’s selloff, one of the largest Ethereum whales liquidated a total of 28,554 ETH in cash in order to pay off his debts on Aave, a decentralized borrowing platform.
This translates to roughly $64.4 million. This has increased the selling pressure on ETH, making things even more complicated for ETH in the market.
These cumulative activities have sparked talk that the ETH sell-off could cause ETH to drop below $2,000 if it continues this way.
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Call for transparency
As the situation continues to evolve, there are calls for more transparency from Buterin and the Ethereum Foundation regarding how the cryptocurrency will be sold.
🚨🚨 After Vitalik, Ethereum Foundation is next to sell Ethereum!
Just 10 minutes ago, #EthereumFoundation 450 sold Ethereum For 1.029 million Day.
In total, they sold 550. Ethereum ($1.28 million) at an average price of $2,324 in the last four days.
He follows @spotochain For more updates… https://t.co/d2bP0WLo9C pic.twitter.com/cjgFvMeOvw
— Spot on Chain (@spotonchain) September 9, 2024
Insiders close to the foundation said its sales are part of a planned financial policy aimed at managing operating expenses, including grants and salaries.
According to Aya Miyaguchi, CEO of the Ethereum Foundation, one requirement is the need to convert portions of the ETH you hold into stablecoins like DAI to cover certain financial obligations.
This casts a shadow over the Ethereum community, regarding the long-term consequences this may have. While Buterin and the foundation’s idea may indeed be correct, this perception of abandonment plays a significant role in investors’ perception.
Through this action, the market will respond to such withdrawals, and the recovery or decline in the value of ETH is something that stakeholders are eagerly waiting for.
Featured image from Shrimpy blog, chart from TradingView