Key Points
- Vitalik Buterin, the founder of Ethereum, confirms the recent ETH sell-off was the last.
- ETH’s sentiment dropped due to sell-offs by Buterin and the Ethereum Foundation.
Vitalik Buterin, the founder of Ethereum (ETH), has reassured the crypto community that the recent sell-off of ETH was the final one.
His statement followed a wave of criticism following another sale of ETH worth $441K on Thursday, 12th September.
Buterin’s ETH Sell-Off
Buterin explained that this sale was triggered by an automatic Cowswap twap order set up back in August.
A twap strategy is a method of executing large orders by dividing them into smaller chunks over a certain period.
For Buterin, this meant dividing a large ETH sell order into smaller ones to fund projects he supported.
Data from LookOnChain indicates that the wallet linked to Buterin sold 190 ETH on Thursday and has sold ETH worth $2.28 million since 30th August.
This means that Buterin divided a $2.28 million ETH sell order into smaller chunks to fund his projects.
He has consistently stated that he made no profit from these sales, as all proceeds were used to support projects he believed in.
Community Reaction
However, the community has expressed concerns that they are being used as exit liquidity to fund his altruism.
This has negatively affected ETH sentiment and exposed investors to potential losses.
One user expressed frustration with Buterin’s constant sell-off, saying it undermined the progress of ETH supporters.
This sentiment has been prevalent in the past few days, as Buterin and the Ethereum Foundation have carried out significant ETH sell-offs.
ETH’s weighted sentiment dropped into negative territory at the end of August, coinciding with Buterin’s sell-off spree.
The weak sentiment could also be a reflection of the overall crypto market conditions.
However, the ETH FUD could hinder a strong recovery for the largest altcoin.
Data from Arkham shows that Buterin still holds 240K ETH, worth over $500 million.
It is yet to be seen whether the sell-off will indeed cease as promised.
At the time of writing, the price of ETH is struggling below $2500 despite a recent relief rally.
It has erased all yearly gains but has defended 2024 lows of $2200.
