Ethereum

Foundation

Verge

Security

James

<p>The post <a href="https://coinpedia.org/news/ethereum-foundations-35k-eth-transfer-sparks-community-speculations-ef-executive-defends/">Ethereum Foundation’s 35K ETH Transfer Sparks Community Speculations, EF Executive Defends&nbsp;</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Ethereum Foundation’s recent <a href="https://x.com/arkhamintel/status/1827404467261587905?s=46&amp;t=MuRujqZUAz3TQE1vmr3c6A" target="_blank" rel="noreferrer noopener nofollow">transfer </a>of 35,000 ETH valued at $96 million, to a wallet associated with the Kraken exchange has sparked speculations across the community over its potential market impact.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">The Ethereum Foundation famously sold the top in both May and November 2021.<br><br>But in 2020, they sold 100K ETH, right before ETH pumped 6x.<br><br>Last night they sent another 35K ETH to Kraken, worth $95M.<br><br>Did they get it right this time? <a href="https://t.co/bYLOyv8mGQ">pic.twitter.com/bYLOyv8mGQ</a></p>— Arkham (@ArkhamIntel) <a href="https://twitter.com/ArkhamIntel/status/1827404467261587905?ref_src=twsrc%5Etfw">August 24, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-ef-executive-defends-its-move-as-routine-action"><strong>EF Executive Defends Its Move As Routine Action</strong></h2> 
<p>However, the Ethereum Foundation Executive Director Aya Miyaguchi in her <a href="https://x.com/AyaMiyagotchi/status/1827219654999470258" target="_blank" rel="noreferrer noopener nofollow">defense </a>clarified that the recent transfer is part of the Foundation’s routine treasury management. “EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat,” the nonprofit’s executive director added.</p> 
<p>She further added, “This year, there was a long period of time when we were advised not to do any treasury activities due to the regulatory complications, and we were not able to share the plan in advance. Also this transaction is not equal to a sale. There will be planned and gradual sales from here on.” She highlighted that it was executed to balance their financials and it did not indicate an imminent sale.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">This is part of our treasury management activities. EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any…</p>— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) <a href="https://twitter.com/AyaMiyagotchi/status/1827219654999470258?ref_src=twsrc%5Etfw">August 24, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-criticisms-from-the-community"><strong>Criticisms From The Community</strong></h2> 
<p>Miyaguchi’s response was not sufficient as Gabriel Shapiro, a crypto attorney and co-founder of Metalex Labs, argued that despite the Ethereum Foundation (EF) spending $100 million each year, there’s a lack of clear direction in terms of maximizing the value of ether or even the <a href="https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/" target="_blank" rel="noreferrer noopener">Ethereum network</a> as a whole.</p> 
<p>Aave-Chan, Initiative founder Marc Zeller also expressed dismay with Miyaguchi’s statement. “100m$/year for what?” Zeller asked. “The Geth team, truly deserving, receives meager pay despite critical work. Once the Purge &amp; Verge upgrades are delivered, it’s time to seriously consider defunding and dissolving the Ethereum Foundation,” he added.</p> 
<h2 class="wp-block-heading" id="h-was-the-action-essential"><strong>Was The Action Essential?</strong></h2> 
<p>While some of the community members view the foundation’s actions as essential for sustaining its mission, others question whether its spending aligns with the long-term growth and stability of the Ethereum network.</p> 
<p>Mudit Gupta, Polygon’s Chief Information Security Officer, argued that the Foundation’s $100 million annual expenditure is justified. Nevertheless, he expressed concerns over why the grants were heavily inclined toward tools over onchain apps. He also questioned why the Foundation doesn’t explore more revenue streams, such as staking its billion-dollar ETH holdings.</p> 
<p>Former Ethereum Foundation employee Hudson James also defended the organization’s expenditure. Arkham Intelligence pointed out how the Foundation’s selling activity impacts the market, given its history of ETH Sales at various price points. This pattern has fueled speculation that the recent transfer might signal either a market top or a potential price surge.</p> 
<p>Also Read : <a href="https://coinpedia.org/news/ethereums-vitalik-slams-defi-why-crypto-leaders-are-outraged/" target="_blank" rel="noreferrer noopener">Vitalik Buterin’s DeFi Criticism Sparks Debate; Leaders Outraged!</a></p>

Ethereum Foundation’s 35K ETH Transfer Sparks Community Speculations, EF Executive Defends

Table of Contents

CoinPedia News

Other articles published on Aug 26, 2024

CZ Released from Prison, Now in Halfway House

SEC Halts Submission of 19b-4 Form for Solana ETF Amid Security Classification Concerns

Indian Authorities Arrest Man for Kidnapping Linked to $2.4B BitConnect Scam

4 reasons why Bitcoin may see $60K before $70K

Binance Resumes Full Operations in India After Securing FIU Registration and Paying $2.25M Fine

LecksMoney Reviews Pepe Unchained Presale With $10.5 Million Raised – Why $PEPU Could Deliver 10X...

Join our free newsletter for daily crypto updates!