Ethereum Foundation Continues Sell-Off as ETH Surges Past $2,500

The Ethereum Foundation adds to its growing ETH sale count.

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  • The Ethereum Foundation has added to its growing ETH sale count.
  • The frequency of the Ethereum Foundation’s selling continues to spark concern.
  • The Ethereum Foundation’s spending has come under significant scrutiny amid what some consider an excessive budget.

After an extended period of uncertainty, the vibes in the crypto space are again beginning to feel immaculate as the Federal Reserve’s decision to cut interest rates for the first time in four years has sent risk markets soaring. Even Ethereum (ETH), the second largest crypto asset by market cap, has not been left out of the rally despite recent concerns about its prospects amid continued market underperformance.

ETH has surged from lows of around $2,200 to trade past the psychologically important $2,500 price point. Amid the market excitement, however, recent asset movements from the Ethereum Foundation have given some investors pause for thought.

Ethereum Foundation Selling Again

The Ethereum Foundation has added to its growing ETH sale count. On Friday, September 20, crypto smart money tracker Lookonchain disclosed that one of the team’s accounts had sold 300 ETH worth over $760,000. Going through on-chain data, DailyCoin confirmed that these sales occurred in three tranches of 100 ETH each on CoW Swap.

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According to Lookonchain, since the start of the year, the Ethereum Foundation has sold over 3,400 ETH worth nearly $9.7 million and is now averaging 151 ETH sales worth nearly $390,000 at current rates every 11 days.

While the sum is by no means market-moving, the frequency of the sell-off, especially amid less-than-ideal market conditions, has raised concerns for many investors.

The Ethereum Foundation’s asset transfers have become a hot-button topic in the crypto community in recent weeks, particularly after the team revealed its annual budget, which some have dubbed excessive.

The Ethereum Foundation’s $100M Budget

In response to the uproar over a 35,000 ETH Kraken deposit worth about $94 million in August 2024, Ethereum Foundation Executive Director Aya Miyaguchi disclosed that the foundation had an annual budget of about $100 million and the deposit, which she argued was not a sale, was part of “treasury management activities.” 

Miyaguchi’s disclosure, however, only helped fan the flames of outrage. Many argued that the budget was excessive and demanded transparency on how these funds were allocated.

Responding to these calls for transparency in a Reddit ask-me-anything session earlier this month, Ethereum researcher Justin Drake asserted that the Ethereum Foundation would release a detailed financial report soon. 

According to Arkham Intelligence data at the time of writing, the Ethereum Foundation still holds nearly $272,000 ETH worth $690 million. Drake estimated that the Ethereum Foundation still had a decade of runway left.

On the Flipside

  • The Ethereum Foundation’s recent sale has not affected the price.
  • It remains unclear when the foundation will release the promised financial report.

Why This Matters 

The Ethereum Foundation’s sales have continued to raise concerns and questions within the Ethereum community, potentially dampening sentiment amid the asset’s recent run.

Read this for more on Ethereum:
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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a journalist at DailyCoin covering DeFi ecosystems and exchanges. David has moderate holdings in Bitcoin, and minor holdings in LINK, DOT, INJ, and memecoins.

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