Ethereum Foundation clarifies no connection to recent ETH sale

Key Takeaways

• The Ethereum Foundation denied involvement in the recent sale of 2,794.87 ETH.
• Ethereum is trading above $4,700, up around 24% in the past week.

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Hsiao-Wei Wang, co-executive director of the Ethereum Foundation (EF), clarified that the foundation was not involved in a recent ETH sale that sparked concern among investors.

On Tuesday, on-chain reports revealed that a wallet linked to the EF sold 2,795 ETH worth approximately $13 million. The sales took place when ETH was trading above $4,500, about 5% below its all-time high.

The wallet in question received 20,756 ETH from the foundation in 20217, according to reports, leading to speculation about the foundation “dumping” tokens amid the ETH price rally.

Responding to speculation, Wang stated that the wallet address was not controlled by the foundation. She explained that during Ethereum’s 2014 ICO, roughly 9% of the total ETH supply was allocated to the foundation, but today, the EF holds under 0.3% of total supply.

“So you can probably find tons of addresses linked to EF after ten years,” Wang said.

In the past, the Ethereum Foundation faced criticism for its opaque treasury management. The focus of the criticism was its frequent, unsystematic, and poorly communicated ETH sales from its treasury.

To address the issue, the foundation has undertaken a major treasury management reform centered on transparency, financial discipline, and active ecosystem support. The EF has also engaged in DeFi participation to both grow its treasury and support Ethereum ecosystem development.

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