The 2017 bull market led many to sell their crypto holdings to make some profit. It seems though that not only retail investors took a piece of the Bullrun cake.
Ethereum Co-Founder Vitalik Buterin recently revealed that the Ethereum Foundation sold 70,000 ETH at the end of 2017 on his recommendation. The revelation may have generated more controversy in the crypto community than Vitalik expected.
While some are in support of the move, saying it was meant to secure the Ethereum network, another faction believes it was a sign that the foundation didn’t have faith in its own token. The 70,000 ETH which at the time was worth $100 million, led to the crash that followed the peak of the 2017 bull run, those against the move allege.
The supporting side of the community, mostly those with some tech knowledge, argue that the sale was a much-needed move to secure the Ethereum network. One of those in defense of the foundation is Chris Burniske. He says the $100 million the foundation secured at the peak of the bull market was much needed and a sign of good treasury management. Some who share a similar view says it was money required for running the project for several years following 2017.
Vitalik probably didn’t think the information needed to be released to Ethereum investors at the time, especially because the transaction was fully accessible on the blockchain. However, Founder of Messari, Ryan Selkis says such information should have been released and similar information should be made available to the community in time subsequently to ensure proper communication between the foundation and the community.
Ethereum recently upgraded its network with project Istanbul. It is one of Ethereum’s major upgrades so far and is expected to greatly improve Ethereum’s performance. However, ETH’s price does not seem to be responding positively to the development. The second-largest cryptocurrency by market cap is currently trading at $133 with a loss of over 6% in the last 24 hours.
Some say the sale of ETH shows that Ethereum isn’t fully decentralized and just a venture to make money out of the community. However, the foundation would have missed the chance to raise such funds which some say are required for running the company.