Ethereum News Today: Ethereum Foundation Denies $12.8M ICO-Era ETH Sale

The Ethereum Foundation has denied any role in a recent $12.8 million Ethereum (ETH) sale from a wallet linked to its early operations in the 2014 Initial Coin Offering (ICO) era. On-chain data revealed that 2,975 ETH—equivalent to $12.8 million at the time—was sold in two separate transactions. Co-Executive Director Hsiao-Wei Wang stated that the wallet is no longer controlled by the foundation and emphasized that the organization has reduced its holdings significantly over the years [1][2].

The wallet in question had previously received ETH in 2017 from another foundation-associated account, sparking speculation about the foundation’s potential involvement. However, the foundation clarified that while it initially held around 9% of the total ETH supply from the ICO, its current holdings account for less than 0.3% [3]. The organization has been systematically reducing its ETH through planned transactions to minimize its financial influence and align with its decentralization principles.

The sale comes amid broader shifts in Ethereum’s treasury strategy, with the foundation increasingly transferring ETH to public companies. In July, it transferred 10,000 ETH to SharpLink Gaming, making it the second-largest corporate holder of Ethereum. This trend reflects a growing concentration of ETH among public corporations, with corporate treasuries now valued at over $14 billion [4]. While this strategy helps avoid market disruption, it has also raised concerns about systemic risk. Ethereum co-founder Vitalik Buterin noted that heavy borrowing against corporate ETH reserves could lead to large-scale liquidations during downturns, potentially amplifying market volatility.

Despite the foundation’s denial, the transaction has reignited discussions about transparency in Ethereum’s treasury management and the implications of large ETH movements on market sentiment. The foundation has maintained that it is focused on supporting open-source development and community-driven initiatives. As corporate holdings continue to rise, stakeholders are likely to scrutinize how key entities manage their crypto assets within a decentralized framework [5].

The Ethereum price has risen nearly 30% in the past week, currently trading at $4,776, and is within 2.5% of its all-time high. This context adds further weight to the broader debate about Ethereum’s treasury strategy and the evolving role of institutional players in the ecosystem.

Source:

[1] Ethereum Foundation Denies $12.8M Sale From Old ICO-Era Wallets (https://coincentral.com/ethereum-foundation-denies-12-8m-sale-from-old-ico-era-wallets/)

[2] Ethereum Foundation Denies Involvement in $12.8m ETH Sale (https://www.ainvest.com/news/ethereum-foundation-denies-involvement-12-8m-eth-sale-points-reduced-holdings-2508/)

[3] Ethereum Foundation Denies $12.8m Sale Tied to Old ICO Wallets (https://crypto.news/ethereum-foundation-denies-12-8m-sale-tied-to-old-ico-wallets/)

[4] Ethereum Foundation Denies Role in $12.8M ETH Sell-Off Amid Growing Corporate Holdings (https://x.com/planetdefi?lang=en)

[5] Could ETH Hit $10000? Experts Explain Why This New Layer-1 Will Disrupt the Top 10 Cryptocurrencies (https://coincentral.com/could-eth-hit-10000-experts-explain-why-this-new-layer-1-will-disrupt-the-top-10-cryptocurrencies/)