Ethereum co-founder Vitalik Buterin recently disclosed that the Ethereum Foundation strategically sold 70,000 ETH worth approximately $100 million during the cryptocurrency's historic price surge in early 2018.
Key Details of the ETH Sell-Off
During an interview with Eric Weinstein of Thiel Capital, Buterin shared:
- Timing Precision: The Foundation executed sales "essentially at the peak" of ETH's value
- Financial Outcome: Assets effectively doubled post-sale, validating the decision
- Personal Moves: Buterin separately sold 30,000 ETH ($22M) in late 2017
At January 2018's peak price of $1,400 per ETH, the Foundation's 70,000 ETH would equate to $100 million in proceeds.
Recent Ethereum Foundation Activity
Recent observations indicate:
- Additional ETH sales totaling $1.5M in past quarter
- Discontinuation of some developer team grants
- Speculation about cash reserves despite estimated $20M annual budget
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Strategic Funding Approach
The Foundation appears to be shifting its support model:
- Preference for grant applications over direct funding
- Avoidance of preferential treatment between internal/external teams
- Focus on sustainable ecosystem development
Buterin's Market Perspective
When questioned about crypto valuations:
- Expressed comfort with market volatility
- Suggested cryptocurrency hasn't yet created $500B in real value
- Clarified he hasn't taken short positions, despite advocating for ETH sales
FAQ: Ethereum Foundation's Strategic Moves
Q: Why did the Ethereum Foundation sell ETH at peak prices?
A: To secure operational funding and capitalize on optimal market conditions while maintaining long-term sustainability.
Q: How does this affect Ethereum's development?
A: The strategic reserve management ensures continued funding for core protocol improvements and ecosystem grants.
Q: What's the significance of Buterin's personal ETH sales?
A: Demonstrates alignment between leadership and Foundation strategy, though executed separately.
Q: Are recent developer funding changes concerning?
A: Represents a shift toward more transparent, application-based funding rather than signaling financial distress.