Ethereum Foundation Reveals Selloff Reason

The Ethereum Foundation's Executive Director, Aya Miyaguchi, has addressed the community's concerns following a significant transaction involving the transfer of 35,000 ETH

The Ethereum Foundation’s Executive Director, Aya Miyaguchi, has addressed the community’s concerns following a significant transaction involving the transfer of 35,000 ETH, valued at approximately $94.07 million, to the crypto exchange Kraken. This transaction raised questions and sparked discussions regarding the Foundation’s financial strategies and potential market impact.

Ethereum Foundation Reveals Selloff Reason

Aya Miyaguchi clarified that the transfer is part of the Foundation’s ongoing treasury management activities. The Ethereum Foundation, which manages a budget of around $100 million per year, uses these funds primarily for grants and salaries. However, not all recipients can accept cryptocurrency payments, necessitating fiat conversions.

This year, the Foundation faced regulatory complications, which resulted in a delay in executing any treasury activities. The advisory against moving funds during this period also prevented the Foundation from sharing its plans in advance.

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…

— Aya Miyaguchi (ayayamiya.eth) (@AyaMiyagotchi) August 24, 2024

Miyaguchi emphasized that this transaction does not equate to an outright sale. Instead, it marks the beginning of planned and gradual sales, aimed at maintaining the Foundation’s financial health while minimizing market disruptions. Despite these reassurances, the transaction still fueled speculation and concerns within the community, particularly about its timing and transparency.

Community Concerns Over Transparency and Communication

The Ethereum foundation’s lack of prior disclosure about such a large transaction has sparked criticism from the Ether community. Many members expressed frustration over the Foundation’s absence of regular financial updates, arguing that better transparency could prevent unnecessary market speculation and fear, uncertainty, and doubt (FUD).

Thanks, Aya.

Perhaps best to always share such disclosures around large movements, rather than letting the market turn it into needless FUD.

— antiprosynthesis.eth ⟠ (@antiprosynth) August 24, 2024

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