Ethereum Foundation Criticized for Multiple ETH Sell-Offs Amid Allegations of Brain Drain
In 2025, Ethereum is facing a tumultuous period that has left its dedicated developer community dissatisfied. Reports indicate that the Ethereum Foundation recently executed significant transactions involving Ether. The process of moving and selling these tokens became complicated when one of the foundations employees tried to clarify the situation, leading to widespread criticism.
Recent activities within Ethereum coincide with a period where Bitcoin and other prominent cryptocurrencies are experiencing remarkable price surges. Currently, Ethereum is trading within the range of $3,200 to $3,384, a considerable drop from its peak of $4,870 in 2021.
Current Situation at Ethereum Foundation
The Ethereum Foundation, responsible for advancing blockchain development, is under scrutiny due to its recent actions. Despite any intentions or broader goals behind these substantial Ethereum transactions, they have left a negative impression on many holders and supporters.
A recent post by Spot On Chain on Twitter/X revealed that the foundation exchanged 100 ETH for 336,475 DAI. Additionally, the foundation sold another 200 ETH for $67,000 in the initial days of 2025 at an average price of $3,361. The post highlighted that Ethereum remains 31% below its 2021 peak of $4,878, while Bitcoin reaches new highs, surpassing $109,000.
[ATTENTION] The Ethereum Foundation just sold another 100 $ETH for 336,475 $DAI!
In total, they have sold 200 $ETH ($672K) in 2025 at an average price of $3,361 over the past 12 days. $ETH remains 31% below its 2021 ATH of $4,878, while $BTC has hit a new ATH of $109K today! https://t.co/9CWWVsrfhj pic.twitter.com/ZOr504i1HG
Spot On Chain (@spotonchain) January 20, 2025
Resonance of Ether Supporters Statements
Lately, the Ethereum Foundations decision to sell 100 tokens has sparked controversy following comments by Josh Stark, a prominent ETH advocate. Stark defended the foundations actions, emphasizing their continued use of Ethereums native token for various transactions.
the EF uses Ethereum all the time, for instance to (1) swap ETH for stables (usually @CoWSwap) and (2) to pay people (grantees, team members) in stables and ETH, on mainnet and L2s. Events we run (like Devcon and Devconnect) take onchain payments and use onchain ID for tickets.
Josh Stark (@0xstark) January 20, 2025
In a Twitter/X post, Stark elaborated on the foundations active use of ETH in various operational aspects. These include acquiring stablecoins, compensating their personnel with stablecoins, and facilitating blockchain-related events.
However, Starks rationale faced criticism from some crypto enthusiasts. Twitter/X user WazzCrypto questioned Starks justification for the foundations transactions involving ETH. Similarly, user @VelvetMilkman expressed disappointment, dismissing it as an inadequate excuse for dealing with alternative coins.
Conversely, Twitter user Trading_Axe delivered a scathing assessment of the situation:
Their brains actually do not work at all.
The fuck you need 300K for so urgently?
What could you POSSIBLY, as the ETHEREUM FOUNDATION, when the entire world is watching, need 300K OF A PUBLIC SELL ORDER for?
Mindless cockroaches.
Retar Dio.
(@trading_axe) January 20, 2025
Buterin Addresses Concerns Surrounding ETH
Ethereum faces criticism for lagging behind other blockchain platforms, notably Solana. Many suggest that Ethereum should consider staking its tokens instead of executing sales to generate returns. Vitalik Buterin, Ethereums co-founder, acknowledged the growing number of critiques directed at the foundation.
Buterin mentioned that the team has explored staking options for their tokens but regulatory obstacles and potential issues with the hard fork complicated this strategy. Despite a relatively favorable regulatory landscape, the risks associated with staking remain a concern.
Featured image from ETF Stream, chart from TradingView
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Text source: Crypto Breaking News
