Should investors be worried?
Data from the platform #Arkham revealed that Vitalik Buterin, the founder of Ethereum, sold amounts of the currency over the past three days. Why is he selling now and how will this affect investors?
1️⃣ Transaction details
Quantity: Sold 2,961.5 #ETH in the last 72 hours.
Value: Approximately $6.6 million.
Mechanism: Transactions were conducted via #CoWProtocol using small batches, so the market did not experience any shock.
Transparency: the wallet associated with Vitalik is completely clear, including #ETHUSDT and $USDC and #EUROe and $GHST , without using any anonymity protocols.
2️⃣ Why is he selling now?
It is crucial to understand the context of the sale, as Vitalik previously announced an increase in Ethereum withdrawals, having recently transferred 16,384 Ethereum worth over $43 million. He has redirected investments for charity, and these initiatives are managed through his Kanro foundation, which also focuses on research in biology and biotechnology, and encourages open-source security.
Therefore, these sales include the planned capital, and do not reflect panic behavior. Moreover, he has always been a slow seller; he does not sell suddenly, and this pattern continues here.
There is no relation to the price drop: his sales came after the recent drop in Ethereum (~25%) due to global economic factors, and not the cause of the drop.
3️⃣ Should investors be worried?
The sale volume is very small: compared to the daily trading volume of Ethereum in the billions, selling $6 million has almost no impact on the price.
Vitalik uses his previous profits to support scientific research and develop the future of Ethereum, not for selling or short-term speculation.
What happened is a reallocation of assets for research and charitable purposes, not an escape from the market.
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