In 2024, the Ethereum Foundation raised eyebrows within the crypto community by constantly offloading its ETH holdings. They stuck to the previous pattern by selling 100 ETH for 241,000 DAI, bringing the total ETH sold by the Foundation to 2,616 ETH since January.
Cumulatively, this year, they have accumulated $7.64 million in DAI at an average price of $2,922 per ETH. This ongoing sell-off has garnered attention due to its timing, coinciding with similar sales by Vitalik Buterin.
The #Ethereum Foundation sold 100 $ETH for 241K $DAI again 1 hour ago.
Since Jan 1, #Ethereum Foundation has sold 2,616 $ETH for 7.64M $DAI on DEX at an average price of $2,922.
Address:
0xd779332c5A52566Dada11A075a735b18DAa6c1f4 pic.twitter.com/tsqs4V39aQ— Lookonchain (@lookonchain) September 5, 2024
Ethereum Foundation and Vitalik’s selling spree
The Ethereum Foundation’s recent selling pattern aligns with Vitalik Buterin’s ETH sales, which began in August. These large selloffs have ignited concerns about the state of the Ethereum market.
Buterin’s multiple large transfers, like moving 3,000 ETH to a multi-sig wallet and subsequent transfers to exchanges like Kraken, have led to sharp declines in ETH’s price. ETH’s price dropped 24% in August alone, compared to Bitcoin’s 10% decline.
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According to the foundation’s insiders, the sales are part of its routine treasury management strategy. However, such consistent transfers create market turbulence, amplifying fears of an upcoming bear market. These fears are particularly acute because large sales from the Foundation have historically aligned with market tops.
Continuing its strategic asset management, the Ethereum Foundation recently sold 100 ETH for 241,000 DAI on decentralized exchanges. This is part of a series of sales that started in January, bringing its total for 2024 to 2,616 ETH.
The Foundation has clarified that its yearly budget is approximately $100 million, allocated primarily toward grants and salaries, many of which need to be paid in fiat.
Timeline of Ethereum Foundation Sales in 2024
- January 2024: The Foundation started selling ETH as part of its treasury management, with 616 ETH sold.
- July 17, 2024: A major transaction saw 3,631 ETH transferred to Kraken, followed by another 2,631 ETH sold, totaling nearly $21 million
- August 23, 2024: The Foundation transferred 35,000 ETH (worth $94 million) to Kraken, its largest transaction of the year
- September 4, 2024: The Foundation sold 100 ETH for 241K DAI, contributing to the cumulative sale of 2,616 ETH in 2024.
According to statements made by Aya Miyaguchi, an ETH Foundation member, the ETH Foundation’s annual budget is $100 million. These numbers seem to be high even for traditional centralized companies.
The lavish spending by the ETH Foundation only came to light because of concerns rising from these recent selloffs. Decentralized blockchain organizations are usually much cheaper to run than their bloated traditional counterparts.
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