According to Arkham Intelligence data, Ethereum (ETH) founder Vitalik Buterin and the Ethereum Foundation have moved large amounts of ETH, which has created a market buzz.
In the last two years alone, transfers from Buterin’s wallet have included more than 840,000 ETH, and the Foundation has transferred 35,000 ETH to exchanges. These moves come when Ethereum has exhibited volatility, with prices fluctuating greatly from the previous year’s lows.
Vitalik Buterin Sells ETH for Charity, Denies Profit
Buterin’s wallet activities have captured much attention after he transferred 3,800 ETH in August and sold 760 ETH. These sales raised about $1.8 million, with the transactions taking place at an average of $2,414 per ETH.
Buterin explained that his sales are mostly for charity and not for generating income for himself. He claims that all his financial decisions are to help projects and charities close to his heart.
Also, Vitalik Buterin has come forward and said that he will not invest in new layer-2 solutions or tokens for his own benefit. He continues to be very involved in philanthropy and spends his ETH on the causes that he supports. This comes at a time when there are more and more cases of insider actions within the crypto sphere.
Ethereum Foundation Criticized for Lack of Transparency
The Ethereum Foundation has recently moved 35,000 ETHs, equivalent to over $94 million, to the crypto exchanges, raising concerns among the Ethereum community.
The pressure from the community has forced the Foundation to make an initial release of information from the financial aspect of the organization with the assurance of releasing more elaborate reports in the future. These are usually made to cater for operational expenses and have been criticized for being non-transparent.
This is important because of the Foundation’s management of its resources, especially at a time when Ethereum’s price is under pressure. After a strong recovery, Ethereum fell again and had a large sell-off on September 7th due to a whale liquidating positions to cover losses on the Aave protocol.
Ethereum Whales Offload ETH Amid Price Concerns
Ethereum whales, including prominent addresses like Metalpha, have also been participating in the rally, transferring large amounts of ETH to exchanges, including Binance.
Metalpha alone moved 23, 589 ETH in three days, equivalent to $54.1 million. These moves are in sync with a larger trend of distribution among the big holders, which paints a bearish picture for ETH’s price.
Crypto analyst Ali Martinez said that the Ethereum whales have stopped buying ETH since July and have been selling it. This behavior change suggests a loss of confidence in the short-term price of ETH. While large holders continue to sell their positions, the market is curious to see how this affects Ethereum’s price.
These large transactions, market reactions, and future financial statements from the Ethereum Foundation will be important in determining Ethereum’s price in the coming months.
