As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market volatility and investor reactions. In the case of Ethereum co-founder Vitalik Buterin’s recent transactions, it is essential to separate fact from speculation.
For the past several weeks, the attention has been on Vitalik Buterin, one of Ethereum‘s co-founders, due to a transaction involving the sale of approximately 950 Ether from an account linked to him.
Investors have raised questions about the sales due to their questionable nature, even after Buterin’s initial explanations. However, following the recent transaction, Buterin has provided more details about the sale and eased some worries within the community.
Ethereum Founder’s Moves Raise Concerns
In August, Vitalik Buterin carried out significant transactions of ETH to a multi-signature wallet associated with him. This action has sparked unease among investors due to concerns that he might sell his holdings, which could potentially intensify the downward trend in the second-largest cryptocurrency by market cap, given the already unstable nature of the crypto market.
According to Bitcoinist‘s report, Ethereum’s co-founder transferred approximately 3,000 Ether (valued at about $8.04 million) to a multisignature wallet on August 9. Twenty days later, he added another 800 Ether (worth around $2.01 million) to the same wallet. Subsequently, the multisignature wallet exchanged 190 Ether for roughly 477,000 US Dollars worth of USDC.
Following the announcement, there was significant backlash within the cryptocurrency community towards Buterin, with many accusing him of misleading the public while selling off his shares (bullposting while dumping). Some also expressed skepticism about the future value of ETH due to the developers allegedly unloading their holdings onto the market.
On the other hand, some investors deemed the backlash unnecessary and felt it’s reasonable to cash out occasionally. However, Buterin clarified that he doesn’t sell tokens with the intention of making personal profits.
In a recent blog post, Vitalik Buterin, creator of Ethereum, detailed that transactions conducted since 2018 were aimed at backing numerous initiatives he deems worthy. These endeavors span across the Ethereum network itself as well as charitable causes such as biomedical research and advancement.
In the following seven days, he elaborated that the identical rule pertained to Layer-2 tokens as well as any other token projects he owned. All earnings derived from these tokens were intended for contributions towards public welfare initiatives.
Is Vitalik Done Selling?
Even though the details about these sales were explained, the crypto community expressed concern once more upon hearing about another sale announcement. As reported by Lookonchain on September 11, a multisig linked to Buterin sold an additional 190 ETH early in the morning of that day.
The report revealed that the transaction, valued at 441,971 USDC, was the latest in a series of sales. Since August 30, Ethereum’s founder, multisig has sold 950 ETH, worth $2.27 million, at an average price of $2,396.
The 950 ETH selloff was divided into five smaller transactions of 190 ETH each, every three days. After the latest transaction, Buterin deposited the proceedings from the 950 ETH to the decentralized protocol Aave.
Some users were troubled by the news, as they once more voiced criticism towards Buterin for selling his tokens at the same time he was promoting them. Furthermore, there were doubts cast on his earlier explanation, with some speculating that it may not have been entirely accurate.
In a previous article, he allayed investor worries, explaining the cause for the recent action. As per the creator of Ethereum, the transaction on Wednesday was initiated due to an “automated market-making order” placed by a biodefense organization he supports.
The arrangement was established on August 29, however, it wasn’t carried out until Wednesday. This suggests that the other four transactions also followed a similar setup. Furthermore, Buterin indicated that it was “the final one,” which means that, for now, investors can relax knowing there won’t be any more sell-offs linked to these orders.
Currently, the second most valuable cryptocurrency, priced at approximately $2,348, has experienced a minor increase of 0.2% over the past day.
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2024-09-13 09:42