Vitalik Buterin Moves Millions Into Ethereum Sparking Debate About ETH Sales

Ethereum co-founder Vitalik Buterin has once again transferred a large amount of ETH, sparking new discussions in the crypto community.

According to a report by Lookonchain, Buterin moved 800 ETH with an estimated value of $2.01 million to a multisig wallet. Soon after, 190 ETH from this wallet was exchanged for 477,000 USDC, a stablecoin pegged to the US dollar.

Is Buterin downloading ETH?

This transaction follows a larger transfer that Buterin made on August 9, where he moved 3,000 ETH, worth about $8.04 million, to the same wallet.

These moves have reignited ongoing debates within the Ethereum community about the asset’s role as a store of value, particularly given concerns about large-scale sales of ETH by large holders, commonly called “whales”.

The 30-year-old’s fund moves also come amid growing speculation about the Ethereum Foundation’s handling of its ETH reserves. Just a week ago, the organization transferred 35,000 ETH, with a fiat value of $94 million, to Kraken, raising questions about the transparency of its operations.

Executive Director Aya Miyaguchi then responded to growing concerns by clarifying that the large transfer was part of the Foundation’s treasury management. The funds, he explained, were needed to cover operating expenses, including the payment of grants and salaries, some of which require payments in fiat currency.

Buterin also reached out to X to address the concerns directly, and in the process revealed that around 90% of his net worth is in ETH. He also stated that he takes almost $140,000 as a monthly salary from the Ethereum Foundation.

According to Lookonchain, EF has sold over 239,000 ETH since January 2021 for a cumulative value of $654 million. In July, a wallet linked to the organization transferred over $290 million in ETH after being inactive for seven years.

Watching the whales

Whale activity is often a central point of discussion within the crypto community, as their action can often have consequences for the overall price and perception of an asset.

As such, chain analysts tend to keep a close eye on any fund movements at these addresses, and Buterin’s known portfolios are of particular interest.

At the time of writing, ETH was priced at $2,526, having spent the last 24 hours fluctuating between $2,503 and $2,593. Its current level is a slight 0.8% drop from its position from a day ago and a 5.7% drop for the week.

Likewise, over 30 days, the asset is down almost 24%. The world’s second-largest cryptocurrency has a market cap of $303.8 billion, and its current price would put Buterin’s stake of 240,171 ETH at about $606.6 million.

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