🌎 Ethereum Foundation Faces Backlash Over ETH Sell-Offs

Ethereum Foundation Under Fire for Continued ETH Sell-Offs

The Ethereum Foundation has been facing backlash from the cryptocurrency community due to its frequent sell-offs of Ethereum (ETH). This criticism comes at a time when Ethereum’s price has been struggling to regain its momentum, while other cryptocurrencies like Bitcoin (BTC) are hitting new all-time highs.

Ethereum’s Struggling Price and Lack of Retail Hype

Ethereum started 2024 at $2,350 and reached a high of $4,000 by December, but has since declined. It remains 31% below its 2021 all-time high of $4,878. In contrast, other networks like Solana are gaining attention and attracting billions with trendy products and services.

The Ethereum Foundation’s Sell-Offs Spark Controversy

The Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, has been selling off ETH to cover expenses and operational costs. However, these sell-offs have raised concerns among the community, with some questioning the foundation’s intentions.

A recent sale of 100 ETH for 336,475 DAI on January 20 sparked outrage, with some users criticizing the foundation’s actions on social media. Josh Stark, a prominent figure in the Ethereum ecosystem, defended the foundation’s actions, stating that they use ETH to pay for expenses and events.

“The EF uses Ethereum all the time, for instance to (1) swap ETH for stables (usually @CoWSwap) and (2) to pay people (grantees, team members) in stables and ETH, on mainnet and L2s.”

Community Backlash and Frustration

However, the community was not convinced by Stark’s explanation, and the foundation’s subsequent sell-off of another 100 ETH only intensified the frustration. Users took to social media to express their disappointment and anger, with some questioning the foundation’s need for such large sell-offs.

Vitalik Buterin Responds to Concerns

Ethereum co-founder Vitalik Buterin responded to the controversy, stating that the foundation has been exploring staking its assets instead of selling them. However, he noted that regulatory uncertainty and the risk of taking a position on a potential hard fork have been concerns.

“The concerns historically were (1) regulatory, (2) if EF stakes ourselves, this de-facto forces us to take a position on any future contentious hard fork.”

What’s Next for Ethereum?

The controversy surrounding the Ethereum Foundation’s sell-offs highlights a larger issue with Ethereum’s trajectory in 2025. While competitors are growing their ecosystems and attracting retail investors, Ethereum’s focus on scalability through layer-2 networks may not be enough to regain its momentum.

Tips for investors: