Ethereum co-founder Vitalik Buterin’s $10 million sale sparks speculation

Ethereum (ETH) co-founder Vitalik Buterin transferred about $10 million worth of ETH to wallets linked to crypto exchanges. That move took place in August and led to widespread speculation about Buterin’s intentions.

Additional data from Arkham Intelligence reveals a more extensive pattern of outflows from Buterin’s Ether address. Since 2015, the address has seen transfers of approximately 422,000 ETH, valued at $1.04 billion as of September 1, 2024. Notably, over 840,000 ETH have moved out of the address in the last two years alone.

These substantial transfers have fueled rumors that Buterin may liquidate his Ether holdings to capitalize on the profits. The timing is particularly intriguing given that Ethereum is currently trading 180% higher than its 2022 cycle low of $885.

However, Buterin moved quickly to quash these allegations. On August 31, he took to social media to clarify his position, stating that he has not sold ETH for profit since 2018. He emphasized that all of his ETH transfers since then have been aimed at supporting various projects that he consider valuable both within ETH. The Ethereum ecosystem and in broader charitable efforts.

Interestingly, Buterin’s transfers coincide with significant moves from the Ethereum Foundation itself. The foundation’s official address transferred 84,000 ETH, worth over $207 million, to crypto exchanges in August. This aligns with the foundation’s known practice of periodically selling portions of its ETH holdings to fund development, research, and other critical ecosystem initiatives.

It is worth noting that such large-scale Ether transfers can sometimes trigger short-term market reactions. Investors often interpret these moves as potential selling pressure, which can affect market sentiment. For example, in November 2021, when the Ethereum Foundation transferred 20,000 ETH to Kraken, it preceded the Ether price peak and subsequent 85% correction.