Vitalik Buterin Withdraws 760 ETH As Market Turmoil Strikes Ethereum

Christian Encila

9 months ago

4 mins read

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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.

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.

Ether market cap currently at $278 billion. Chart: TradingView.com

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.

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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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