Ethereum Foundation: No Connection to Recent ETH Token Sale
Ethereum Foundation Disavows Recent ETH Sale
The Ethereum Foundation (EF) has clarified it had no connection to a recent sale of 2,795 ETH, allaying concerns within the crypto community. Hsiao-Wei Wang, co-executive director at the EF, addressed speculation after on-chain data revealed the transaction from a wallet previously linked to the foundation.
Key Points:
- The Ethereum Foundation has denied involvement in the recent sale of 2,795 ETH.
- The wallet in question received over 20,000 ETH from the foundation in 2017.
- The Foundation clarified that they hold less than 0.3% of the total ETH supply.
Foundation's Response to Token Sale Concerns
The recent sale, worth approximately $13 million when ETH was trading above $4,500, triggered speculation that the EF was offloading its holdings during the ETH price rally. However, Wang stated that the wallet address was not controlled by the foundation. She further explained that while the EF received roughly 9% of the initial ETH supply during Ethereum’s 2014 ICO, it now holds less than 0.3% of the total supply.
"So you can probably find tons of addresses linked to EF after ten years," Wang noted, emphasizing the limited control the foundation maintains over these older wallets.
Efforts Toward Treasury Transparency
The Ethereum Foundation has faced criticism in the past regarding its treasury management practices, specifically its sporadic and poorly communicated ETH sales. To address these concerns, the EF has initiated a treasury management reform focusing on transparency, financial discipline, and active support for the Ethereum ecosystem. This includes participation in DeFi to grow its treasury and foster ecosystem development.
For developers building on Ethereum, understanding the security implications of large token movements is vital. Platforms like Codeum provide blockchain security audits that can help assess and mitigate risks associated with such events.