Vitalik Buterin, Ethereum founder responded to criticism of Ether on-chain transfers. Buterin’s recent Ether transfers have raised concerns among ETH holders. Ether crumbled under selling pressure since ETF launch and consistent outflows have negatively influenced the altcoin’s price.
Ethereum co-founder, Vitalik Buterin, held on to his Ether tokens from 2018 and only transferred them to send to projects that he finds valuable or for charity. Recent Ether transfers have raised concerns among ETH holders.
Buterin assuaged ETH holder concerns in his tweet and said,
I haven't sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the ethereum ecosystem or broader charity (eg. biomedical R&D).
I haven't sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the ethereum ecosystem or broader charity (eg. biomedical R&D)
— vitalik.eth (@VitalikButerin) August 31, 2024
Dan Borovik, partner at crypto and NFT Casino Rollbit shared Vitalik’s personal Ether holdings of nearly $600 million.
Vitalik personally holds $600 million in Ethereum pic.twitter.com/aF09GzxmRF
— borovik (@3orovik) August 30, 2024
Analyst behind the X handle @defi_mochi notes that institutional capital outflow from Ether ETFs is likely the driver of the decline in ETH price. Large volume outflows contribute to selling pressure and a negative impact on the asset’s price.
Those criticizing @ethereum foundation for $ETH's price action are forgetting who is actually responsible:
— Defi_Mochi (@defi_mochi) August 31, 2024
1. @Grayscale - Unloaded > $1.3B worth of $ETH since early July
2. @jump_ - Sold > $378M worth of $ETH in the past month
3. @paradigm - Sold >$150M worth of $ETH after… pic.twitter.com/kZhigqA7oj
Ether trades at $2,476 at the time of writing.
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.