In recent days, there has been unrest in the crypto market after it was announced that Vitalik Buterin, co-founder of Ethereum (ETH), sold almost 3,000 ETH. The total value of this sale is approximately $6.7 million. That sounds big, but according to Buterin himself there is no reason to panic.
Why did Buterin sell ETH?
Buterin has indicated that the sale does not represent a lack of confidence in Ethereum. On the contrary: he uses the money to strengthen the Ethereum ecosystem.
At the end of January, he announced that he would use part of his personal ETH to support the Ethereum Foundation during a period of lower spending.
He also uses the money for open-source projects and charities that focus on security, privacy and technology and do something good for society. This concerns, for example, projects for finance, communication, governance and biotechnological research.
Many people are watching what Buterin does because he is the founder of Ethereum and is considered one of the most influential people in the crypto world. His actions are often seen as a signal about confidence in Ethereum and the direction of the network. As a result, even a relatively small transaction by Buterin can have a major impact on market sentiment.
No panic reaction from Buterin
Due to the sharp drop in prices, there was soon speculation on social media that Buterin was “getting out”, but that assumption turned out to be incorrect. According to on-chain data, he still owns tens of thousands of ETH across multiple wallets. The recent transactions are part of a planned sale and are not intended as a complete exit from Ethereum.
This pattern is not new either. In the past, Buterin often exchanged ETH for stablecoins, which he then donated to charities such as biotechnology research and pandemic preparedness.
Timing provides extra attention
The sale took place while the Ethereum price was under pressure. Ethereum fell sharply in price at the beginning of February, meaning that every major transaction receives extra attention.
Analysts point out that this mainly has a psychological effect: investors become nervous if a well-known name is active during a declining market. However, some institutional parties continue to buy more ETH, which shows that confidence in Ethereum is still present in the long term.
Source: https://newsbit.nl/ethereum-oprichter-vitalik-buterin-dumpt-voor-miljoenen-aan-eth/
