Ethereum Foundation Refutes Role in $12.8M ETH Sale Amid Treasury Shift

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The Ethereum Foundation denies the $12.8M ETH sale from a 2017-linked wallet, stating it no longer controls the address.

Foundation holdings now account for less than 0.3% of ETH supply, down from 9% allocated during the 2014 ICO.

Corporate ETH treasuries top $14B, concentrating supply among public companies, raising potential systemic risk concerns.

The Ethereum Foundation has denied conducting a $12.8 million Ethereum sale from a wallet connected to its early operations. Co-Executive Director Hsiao-Wei Wang clarified that the wallet in question, which sold 2,975 ETH in two transactions, is no longer under the Foundation’s control.

On-chain analysis showed the address had received ETH in 2017 from another Foundation-associated account. This connection led to speculation about Foundation involvement in the sale. Wang explained that while the Foundation originally received around 9% of the total ETH supply during the 2014 ICO, its current holdings represent less than 0.3% of the supply.

Addresses from ICO Era Still in Circulation

According to the Foundation, several wallets from that period remain active but are not tied to current operations. The organization has steadily reduced its holdings through planned transactions. This approach aims to limit its financial footprint and influence over the Ethereum network.

In recent months, the Foundation sold significant ETH holdings directly on-chain to public companies. In July, it transferred about 10,000 ETH to SharpLink Gaming, now the second-largest corporate holder of Ethereum. This strategy avoids market disruption while gradually shifting assets into corporate treasuries.

Corporate ETH Holdings Pass $14 Billion

Data shows corporate Ethereum treasuries have quickly grown and are now valued at more than $14 billion. This concentration of supply in public company hands has become a defining trend, with corporations taking a more prominent role in Ethereum’s asset distribution.

Ethereum co-founder Vitalik Buterin noted that while public company ownership can expand Ethereum’s reach, it may also pose systemic risks. Heavy borrowing against corporate ETH reserves could trigger large-scale liquidations during market downturns, potentially increasing volatility.

Ethereum’s price has risen sharply in recent days. At $4,776, ETH is up around 30% for the week and is now less than 2.5% from its record high.

The post Ethereum Foundation Refutes Role in $12.8M ETH Sale Amid Treasury Shift appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.

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