The Ethereum Foundation has ignited a heated discussion within the crypto community after announcing its intention to sell approximately 10,000 ETH through centralized exchanges.
On Sept. 2, the Ethereum Foundation issued a transparency notice outlining its plan to convert 10,000 ETH over several weeks.
The foundation stated that proceeds from these sales would support critical research and development initiatives, grant programs, and charitable donations.
To minimize market impact, the organization emphasized that conversions would occur through multiple smaller transactions rather than a single large order.
Earlier today, blockchain analytics firm Lookonchain confirmed that the Ethereum Foundation has already initiated the selling process.
The firm reported that the foundation deposited 10,000 ETH, valued at $42.7 million at the time of transfer, into the Kraken exchange.
Despite this substantial movement, the foundation’s public wallets retain approximately 224,800 ETH worth roughly $1.05 billion.
Mixed reaction trails move
Various community members have criticized the decision to sell ETH directly, arguing that alternative funding mechanisms exist within the Ethereum ecosystem.
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These critics contend that the foundation could leverage existing DeFi protocols instead of selling assets on centralized exchanges, which they view as potentially harmful to market sentiment.
AaveChan founder Marc Zeller expressed his disapproval succinctly, suggesting the foundation should “Just use Aave” rather than pursuing direct sales.
His comment reflects broader community sentiment that the foundation should utilize the very DeFi infrastructure it helps support. Notably, the foundation had previously borrowed $2 million in GHO stablecoins through the Aave protocol, using wrapped ETH as collateral.
However, not all community reactions have been negative.
Some members have praised the foundation’s transparency in announcing the planned sales ahead of execution, contrasting this approach with organizations that conduct similar transactions without prior notice.
Ethereum Foundation employee Binji also defended the sale by contextualizing its scale within broader market activity. He noted that the 10,000 ETH represents a relatively small amount compared to the 403,800 ETH that Treasury companies purchased during the same week.
Binji emphasized that foundation sales ultimately serve to strengthen the Ethereum network by funding human resources and research initiatives that attract more developers and users to the platform, thereby increasing the ecosystem’s overall value proposition.