Ethereum co-founder Vitalik Buterin recently addressed concerns about his ongoing sale of ETH, providing clarity on the reasons behind the transactions. Buterin explained that his recent ETH sell-off was triggered by an automatic swap order placed on August 29, which executed the sale last week. This revelation came after reports suggested that Buterin had sold a total of 190 ETH for approximately $441,971 in USDC stablecoins.
Vitalik Buterin Addresses Concerns Over ETH Liquidation
The wallet associated with Vitalik Buterin, known as Vitalik.eth, has been actively selling Ether, raising questions within the community about the ongoing liquidations. To date, this wallet has received a total of 3,800 ETH (worth about $10 million) and has sold 950 ETH (valued at $2.28 million) at an average price of $2,396. Additionally, the Ethereum Foundation has also been selling its ETH holdings.
Recent on-chain data shows that the USDC obtained from Buterin’s ETH liquidation was moved to the Aave platform, with a total of $6.73 million transferred. Further sales by groups like Metalpha have fueled concerns that Ethereum’s price could fall below the $2,000 mark.
In response to questions from the community, Buterin clarified the situation, stating: “That sale from yesterday (by a bio-defense group I fund) was triggered by an automatic cowswap twap order that was set up way back on Aug 29. That was the last one.”
Ethereum to Implement Stricter Criteria for Layer 2 Mentions
In addition to addressing his ETH sales, Buterin shared new guidelines regarding Ethereum’s Layer 2 (L2) solutions. Starting in 2025, Buterin stated that he will only publicly mention L2 projects that have reached “Stage 1” or higher in development. This new standard will apply universally, regardless of Buterin’s personal investments or relationships with the projects.
Several prominent L2 projects are making progress toward reaching Stage 1 by the end of this year, particularly those focusing on Zero-Knowledge (ZK) rollups. Buterin expressed enthusiasm for their development but emphasized the importance of maintaining robust security measures. He cautioned against removing “training wheels” until proof systems are fully reliable.
Buterin explained that Stage 1 is a crucial milestone in which a 75% council threshold is necessary to override the proof system, and at least 26% of the council members must be independent of the roll-up team.
He also highlighted that the multisigs he’s been involved with have not experienced any failures in recent years, reinforcing his confidence in the eventual transition from multisig governance to cryptographic trust.
Conclusion
Vitalik Buterin’s explanation of his ETH sell-off and the introduction of stricter criteria for L2 mentions offers insight into Ethereum’s future direction. While his recent ETH sales may have raised concerns, his commitment to enhancing Ethereum’s security and development shows his continued focus on the platform's long-term success.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“