Ethereum

Vitalik Buterin Explains Why He Sold ETH, Puts Stricter Criteria for L2 Mentions

2 months ago
Bitcoin Ethereum News

Ethereum co-founder Vitalik Buterin recently revealed the reason behind his current ETH sell-off addressing growing concerns within the community. Reports yesterday suggested that the Ethereum co-founder sold a total of $190 ETH for $441,971 for the USDC stablecoins.

Vitalik Buterin Clears Doubts Over ETH Sell-Off

Vitalik.eth, a wallet associated with Vitalik Buterin, has continued selling Ether sparking concerns over the current liquidations. This wallet has received a total of 3,800 Ether worth around $10 million from Buterin and has sold 950 Ethereum (worth $2.28 million) at an average price of $2,396. Along with Buterin, the Ethereum Foundation is also selling its ETH.

The latest on-chain development suggests that the vitalik.eth address has further moved USDC obtained from ETH liquidation to the Aave platform. As per the latest on-chain data, Vitalik Buterin moved a total of 2,851 worth $6.73 million to the Aave platform.

Additional ETH sales conducted by the Metalpha group have sparked concerns of an Ethereum price dip under $2,000.

In a recent post, Vitalik Buterin spoke about having stricter L2 mentions. However, his followers interrupted him asking why is he selling ETH recently in big numbers. Responding to this, Buterin said:

“That sale from yesterday (by a bio-defense group I fund) was triggered by an automatic cowswap twap order that was set up way back on Aug 29. That was the last one”.

Ethereum to Have Stricter Criteria for L2 Mentions

The Ethereum co-founder recently stated that from 2025, he would only publicly mention Layer 2 (L2) solutions that have reached “stage 1” or higher in development. He further stressed that the criteria will apply universally regardless of any personal investments or connections with the project. Here’s a list of some of the top L2 projects of 2024.

Furthermore, in his statement, Buterin revealed that several Zero-Knowledge (ZK) rollup teams are working to achieve Stage 1 by the end of this year.

The Ethereum co-founder showed enthusiasm regarding the progress made but stressed the importance of maintaining security measures. Furthermore, he cautioned against removing “training wheels” until proof systems are fully reliable.

Vitalik Buterin said that Stage 1 is a key milestone where a 75% council threshold is essential to override the proof system and that at least 26% of the council should be independent of the roll-up team.

He also said that all the multisigs that he’s involved with haven’t experienced failures in years. Thus, he remains confident regarding the transition from multisig governance to cryptographic trust.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/vitalik-buterin-explains-why-he-sold-eth-puts-stricter-criteria-for-l2-mentions/