Vitalik Buterin Withdraws 760 ETH As Market Turmoil Strikes Ethereum
10 September 2024 - 3:00AM
NEWSBTC
Ethereum co-founder Vitalik Buterin has been in the news of late
with his 760 ETH withdrawal–a move that raised eyebrows as
speculations about what such external wallet transactions by him
could do to the Ethereum market. Related Reading: Ether Liquidity
Plummets 40% On Exchanges After ETF Debut Transactions are part of
a broader trend that has seen wallets associated with Buterin and
the Ethereum Foundation actively sell large portions of Ether. It
is this aggressive selling that has added to the bearish pressure
on Ethereum’s price, which lately slipped to the low $2,150 level
before recovering slightly. Vitalik Buterin: Details Of The
Withdrawal The wallet, according to reports, has been selling since
it received Buterin’s ETH in two transactions on Aug. 9 and Aug. 30
totaling 3,800 ETH. In the wake of the two transfers, the wallet
has sold 760 ETH for approximately 1.835 million USDC or roughly
$2,414 per ETH. The multi-signature wallet that got $ETH from
@VitalikButerin is on a selling streak! After receiving 3,800 $ETH
($9.99M) from Vitalik on Aug 9 and 30, it’s been cashing out,
selling 760 $ETH for 1.835M $USDC at ~$2,414 per ETH. The latest
sale happened just 21 hours ago.… pic.twitter.com/ELcjpPSg4K — Spot
On Chain (@spotonchain) September 9, 2024 The recent sale was made
just 21 hours ago and has become a part of a streak of aggressive
liquidations that have sparked speculations in the crypto
community. Buterin was even accused of “dumping” his ETH holdings,
which he always publicly denied, claiming that funds go to support
development in the Ethereum ecosystem and philanthropy. While he
has been reassuring, the continuous sales from wallets attributed
to him have greatly contributed to increased bearish sentiment
among investors. Broader Market Implications This selling is not a
one-man activity carried out by Buterin; Ethereum Foundation is
also notorious for offloading huge quantities of ETH. According to
reports, it has sold over 3,066 ETH this year alone. Such sustained
sales have raised questions about the whole Ethereum market’s
health. According to analysts, sales such as these, together with
large holder store reductions, have made life tough for ETH,
struggling to hold its value. Besides Buterin’s sell-offs, one of
the largest Ethereum whales liquidated a total of 28,554 ETH in
cash in order to pay back his debt on Aave, a decentralized
borrowing platform. That amount translates into approximately $64.4
million. This further added to the ETH sell-off pressure, making
things even more complicated for ETH in the market. These
cumulative activities have stirred talks that this aggressive ETH
sell-off might cause ETH to plunge even below $2,000 if it proceeds
this way. Related Reading: Cardano Bull Sees ADA Jumping 1,000% In
An ‘Insane’ Rally A Call For Transparency With the situation still
developing, there are some calling for more transparency on
Buterin’s part and that of the Ethereum Foundation with respect to
how they are selling the cryptocurrency. 🚨🚨 After Vitalik, the
Ethereum Foundation is the next to sell $ETH! Just 10 minutes ago,
the #EthereumFoundation sold 450 $ETH for 1.029M $DAI. In total,
they’ve sold 550 $ETH ($1.28M) at an average price of $2,324 in the
past 4 days. Follow @spotonchain for more updates…
https://t.co/d2bP0WLo9C pic.twitter.com/cjgFvMeOvw — Spot On Chain
(@spotonchain) September 9, 2024 Insiders close to the foundation
have said its sales are part of a planned financial policy aimed at
managing operational expenses, including grants and salaries.
According to Aya Miyaguchi, executive director of the Ethereum
Foundation, one requirement is the need to convert portions of the
ETH it holds into stablecoins like DAI to cover certain financial
obligations. This casts a shadow on the Ethereum community, as to
where this could lead in the long run. Though the idea of Buterin
and the Foundation could be genuinely valid, this dumping
perception plays a significant role in investor perception. With
this action, the market would respond to such withdrawals, and
recovery or fall in ETH value is something the stakeholders keenly
await. Featured image from Shrimpy Blog, chart from TradingView
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