Is Ethereum going to crash?
Ethereum is in turmoil. Recently, ETH seems to have encountered a cold snap and its price plummeted. The small increase in the whole year was almost swallowed up, leaving only a slight increase of 5% as a witness. In this turbulent market, the continuous selling behavior of the ETH Foundation and Vitalik Buterin has aroused widespread speculation and concern from the outside world. Does it indicate a crisis of abandoning the ship at a loss?
In fact, although the ETH Foundation's selling behavior seems to add fuel to the fire, it may contain deeper strategic considerations. According to statistics, the foundation recently sold 450 ETH worth millions of dollars, and Vitalik Buterin himself sold 760 ETH in a week. This is only part of the selling action in the past eight months, and the total amount has approached 9 million US dollars. Behind these selling behaviors, perhaps it is a financial strategy adjustment of Ethereum in response to market uncertainty.
At the same time, the core development team of Ethereum has shown amazing resilience and vitality. In the middle of the night, the team announced the joining of two new members, which undoubtedly injected new impetus into the future development of Ethereum.
They will work together to support the Ethereum Developer Conference, promote core work such as the protocol funding plan, and ensure that the giant ship of Ethereum can still move forward steadily in the wind and rain.
In the face of external doubts and concerns, Vitalik Buterin personally came forward to clarify the doubts. He responded to the question of the sustainability of the ETH Foundation's funds in a relaxed tone. He said that according to the current cost-saving strategy, the foundation only uses 15% of the remaining funds each year, which can theoretically achieve sustainable operation. And he also frankly pointed out that this strategy is similar to eating old capital. In the long run, the capital reserves will naturally decrease. But Vitalik Buterin's words are more like an optimistic expectation and a firm belief in the future.
