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Another $32M ETH Gone: Is the Ethereum Foundation Dumping Too Much?
The Ethereum Foundation has recently transferred another $32 million worth of Ether (ETH) to a treasury wallet, marking one of its fastest sell cycles in recent years. In just three weeks, the organization moved 1,000 ETH daily from June 10 to July 1, totaling 13,000 ETH.
This significant outflow has raised concerns among community members, with some suggesting that the Foundation is dumping too much Ether on the market. The question remains: what’s behind this sudden and unprecedented sell-off?
As previously reported, the Ethereum Foundation sells ETH to fund developer grants, research initiatives, legal needs, and ecosystem events. It also supports important projects such as EIP-4844 proto-danksharding work and the Tornado Cash legal defense.
Notably, the transfer was made to a Gnosis Safe multisig wallet, a standard security measure. Treasury reports indicate that these funds typically reach fiat through regulated OTC desks, rather than open market dumps. This clarifies some concerns about potential market manipulation or sudden price swings.
Despite this reassurance, critics argue that selling such a large amount of Ether could be detrimental to the overall Ethereum ecosystem. Some have proposed alternative methods for generating income, such as staking its ETH instead of selling it outright. If the entire treasury were staked, the Foundation could generate an estimated $7–10 million in passive income annually.
However, Vitalik Buterin, co-founder of Ethereum, has defended these sales, citing concerns about governance and legal uncertainty surrounding staked ETH being viewed as a security. While some of these concerns have eased, it’s clear that this topic remains a point of contention within the community.
On the other hand, others argue that the Foundation is simply exercising its rights as a holder of Ether and should not be expected to prioritize any specific outcome or metric, such as ETH price stability.
To answer the question whether the Ethereum Foundation is dumping too much, it’s crucial to consider its historical pace. The organization has historically sold about 15,000–20,000 ETH annually in previous years. This latest outflow, at approximately 13,000 ETH in just three weeks, does indeed represent a faster drawdown than before.
Nonetheless, the Foundation still holds an estimated 94,000-97,000 ETH and approximately $120-$130 million in fiat and stablecoins. This brings its total treasury near $250-$300 million at current prices.
The organization’s financial plan aims to reduce spending dependence on reserves to just 5% over five years by implementing a cap of 15% on the annual operating budget. The next quarterly treasury report, due in September 2025, will provide crucial insight into how these funds are utilized and any potential changes to its strategy.
For now, while concerns about market manipulation or price swings persist, it’s essential for stakeholders to remain patient and informed as this situation unfolds.
Source: coinchapter.com
