Vitalik Buterin Sells $2M in ETH, Continues August Sell-Off

Earlier today, at around 5:30 AM UTC, Vitalik Buterin transferred 800 Ethereum (currently valued at $2.01 million) to a multi-sig wallet. Just 17 minutes after the transfer, the funds in the wallet swapped 90 ETH for 477,000 USDC. This transaction is part of an ongoing trend observed throughout August 2024, when Buterin has been consistently selling significant amounts of ETH.

These selloffs have affected Ethereum prices, as it has lost close to 24% of its value in August alone, while Bitcoin is only down 10% this month. 

Timeline of Vitalik’s ETH sell-offs in August 2024

  • August 5, 2024: Vitalik Buterin moved 3,000 ETH ( approx $7 million) to his primary wallet, “vitalik.eth”. This large transfer raised eyebrows in the crypto community.
  • August 9, 2024: He transferred another 3,000 ETH (approx $8 million) to a multisig wallet. Vitalik has confirmed that it was for potential donations.
  • August 15, 2024: Vitalik deposited 200 ETH (approx $530,000) to Kraken. The market reacted sharply, with ETH prices dropping by nearly 10%.
  • August 19, 2024: He moved 400 ETH ( approx $1.05 million) to the privacy-focused mixer Railgun, continuing his pattern of large transfers.
  • August 23, 2024: The Ethereum Foundation transferred 35,000 ETH (approx $94 million) to Kraken. This was the Foundation’s largest transfer of the year, causing further market speculation.
  • August 30, 2024: Another 3,000 ETH was moved by Buterin to a multisig wallet, continuing the trend of significant transfers throughout the month.
  • August 31, 2024: The latest transfer of 800 ETH to a multisig wallet, followed by a swap of 190 ETH for 477K USDC. 

Market Implications and Speculations

The large amounts of ETH transferred by Vitalik and the Ethereum Foundation are contributing to the FUD around ETH. ETH, in general, has lost some status in the crypto community lately due to low-price action and innovative competitors. 

Vitalik Buterin Sells $2M in ETH, Continues August Sell-OffVitalik Buterin Sells $2M in ETH, Continues August Sell-Off
source: sosovalue

Market analysts and the crypto community have speculated on a few reasons that could be behind these transfers, which could be routine treasury management or strategic donations. However, there is another reason that crypto investors are worried about: it could be a potential market exit timed to perfection before a market bear run. 

Despite official clarifications, the timing and volume of these transactions have sparked fears of a possible market downturn, similar to previous instances where large ETH sell-offs resulted in significant price drops.

Buterin has clarified that most of the transfers are for charitable purposes, while the Ethereum Foundation has emphasized that their transactions are part of planned treasury management. However, the market remains cautious, with some fearing that these actions could lead to a repeat of the November 2021 scenario, where ETH lost 40% of its value following large transfers by the Ethereum Foundation.

In November 2021, the Ethereum Foundation transferred 20,000 ETH to Kraken when ETH was near its all-time high of $4,722. Thai dump highlighted the market’s sensitivity to large ETH transfers by influential entities like the Ethereum Foundation. Many ETH holders felt cheated out of their money and still remain cautious when a series of large selloffs happen. 

Also Read: Bitcoin Reserves on Exchanges Hit New Low Since January 2024

Source: https://www.cryptonewsz.com/vitalik-buterin-sell-2m-in-eth-august-sell-off/