Vitalik Buterin, the co-founder of Ethereum, clarified that he will no longer invest in Layer-2 projects. Instead, proceeds from selling Ether (ETH) will be donated to support public goods within the Ethereum ecosystem and other charitable causes. This decision follows recent questions regarding his crypto investments.
In a message shared on X, Buterin said,
“All proceeds will be donated, again either to support public goods within the Ethereum ecosystem or broader charity.”
This statement highlighted that his crypto investments will be directed toward donations for projects related to both Ethereum and other global causes, like biomedical research.
Buterin Highlights Donations as a Greater Impact for Ethereum and Global Causes
Responding to queries about Layer-2 investments, Buterin explained his preference for funding initiatives that align with Ethereum’s core values, rather than seeking personal profit. He pointed out that donations can have a greater positive impact on the ecosystem.
Buterin noted that there are other ways to maximize the impact of financial contributions. He mentioned that,
“There are other options to get leverage out of giving money, e.g., it can be in exchange for commitments to be positive-sum toward Ethereum and/or humanity.”
This indicates that donations often lead to valuable commitments benefiting both Ethereum and global communities.
Vitalik Buterin Shifts Focus to Donations, Steers Clear of Layer-2 Investments
Buterin confirmed he has no plans to invest in Layer-2 projects moving forward. By focusing on donations, he aims to avoid conflicts of interest and maintain transparency within the Ethereum community.
He stated,
“The gains of the cycle you describe are real but seem at present less than the gains of having a clear stance.”
Vitalik Buterin’s ETH Donations Add Selling Pressure, Impacting Ethereum’s Price Recovery
Moreover, Vitalik Buterin’s comments about his ETH donations have brought some uncertainty to Ethereum’s market performance. Even though he explained that the sales of his ETH were intended to support charitable causes and public projects, these donations are being sold off by the recipients. As a result, more ETH is entering the market, increasing the selling pressure on the cryptocurrency. Notably, this is happening at a time when buying interest remains low, raising concerns about Ethereum’s ability to handle the extra supply. The increased amount of ETH being sold is making it harder for the price to recover, especially as demand isn’t picking up.
Ether Price Drops to $2,350 Amid Increased Selling Pressure and Low Buyer Interest
The current price of Ether (ETH) is $2,350.81, marking a 12.20% decline in the past month. Recent market events, including large ETH sales, have increased the selling pressure, contributing to the price drop. Additionally, weak buyer activity has made it harder for the market to absorb the excess supply, further impacting Ethereum’s price movement.
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