Ethereum Co-Founder Vitalik Buterin's $10M ETH Sale Sparks Speculation
Ethereum (ETH) co-founder Vitalik Buterin has transferred approximately $10 million worth of ETH to wallets linked with crypto exchanges. This move occurred in August and has led to widespread speculation about Buterin's intentions.
Further data from Arkham Intelligence reveals a more extensive pattern of outflows from Buterin's Ether address. Since 2015, the address has seen transfers of around 422,000 ETH, valued at $1.04 billion as of September 1, 2024. Notably, over 840,000 ETH have moved out of the address in the past two years alone.
These substantial transfers have fueled rumors that Buterin might be liquidating his Ether holdings to capitalize on profits. The timing is particularly intriguing, given that Ethereum is currently trading 180% higher than its 2022 cycle low of $885.
However, Buterin has swiftly moved to quash these allegations. On August 31, he took to social media to clarify his position, stating that he hasn't sold ETH for profit since 2018. He emphasized that all his ETH transfers since then have been aimed at supporting various projects he deems valuable, both within the Ethereum ecosystem and in broader charitable efforts.
Interestingly, Buterin's transfers coincide with significant movements from the Ethereum Foundation itself. The foundation's official address transferred 84,000 ETH, worth over $207 million, to crypto exchanges in August. This aligns with the foundation's known practice of periodically selling portions of its ETH holdings to fund development, research, and other crucial ecosystem initiatives.
It's worth noting that such large-scale Ether transfers can sometimes trigger short-term market reactions. Investors often interpret these moves as potential selling pressure, which can impact market sentiment. For instance, in November 2021, when the Ethereum Foundation transferred 20,000 ETH to Kraken, it preceded Ether's price peak and subsequent 85% correction.
