Ethereum Foundation Under Fire: Selling Off ETH

Ethereum’s start to 2025 has been rocky, and the community isn’t happy. The Ethereum Foundation has been selling off significant amounts of Ether (ETH), sparking outrage.

The Foundation’s ETH Sell-Off

Reports show the Foundation recently sold 200 ETH for roughly $672,000. This comes at a time when Bitcoin is hitting new highs, while Ethereum is trading far below its 2021 peak of around $4,878. One Twitter account, Spot On Chain, highlighted a recent sale of 100 ETH for 336,475 DAI. This follows other recent sales, all happening while Bitcoin is soaring past $109,000.

A Controversial Explanation

Josh Stark, a prominent Ethereum supporter, attempted to justify the sales, explaining that the Foundation uses ETH for various purposes: swapping for stablecoins, paying employees, and covering event costs.

Backlash and Criticism

This explanation didn’t go over well. Many critics slammed Stark’s reasoning, calling it a weak excuse for selling ETH. Some comments were particularly harsh, questioning the Foundation’s decision-making process and accusing them of poor financial management. One user even went so far as to call the Foundation’s actions “mindless.”

Buterin Weighs In

Even Vitalik Buterin, Ethereum’s co-founder, acknowledged the criticism. He explained that the Foundation explored staking their ETH but decided against it due to regulatory concerns and potential risks associated with the hard fork. While the regulatory environment is currently favorable, the risks remain significant.

The Bigger Picture

Many believe Ethereum is losing ground to competitors like Solana, and the Foundation’s actions are only fueling those concerns. The controversy highlights the tension between the Foundation’s need for operational funds and the community’s desire to see ETH’s value increase.