Vitalik Buterin Clarifies Reasons for ETH Sale, Sets Tougher Standards for L2 References

Ethereum co-founder Vitalik Buterin recently disclosed the rationale behind his ongoing ETH sell-off, which has raised concerns in the community. Recent reports indicated that Buterin sold $190 ETH for $441,971 in USDC stablecoins.

Vitalik Buterin has been under scrutiny for the continuous selling of Ether through the Vitalik.eth wallet. This wallet, linked to Buterin, has seen 3,800 Ether worth approximately $10 million transferred to it, with 950 Ethereum (equivalent to $2.28 million) being sold at an average price of $2,396. Notably, the Ethereum Foundation is also partaking in the ETH sell-off.

Recent on-chain data reveals that USDC obtained from ETH liquidation by the vitalik.eth address was moved to the Aave platform. Buterin transferred a total of 2,851 ETH valued at $6.73 million to Aave.

Widespread concerns about an Ethereum price decline below $2,000 have been triggered by additional ETH sales by the Metalpha group.

In response to queries regarding his notable ETH sell-off, Vitalik Buterin clarified that a sale from yesterday was due to an automatic cowswap twap order set up on Aug 29 by a bio-defense group he funds.

Looking towards the future, Buterin announced that starting from 2025, he will only mention publicly Layer 2 (L2) solutions that have reached at least “stage 1” in development. He emphasized the need for stringent criteria irrespective of any personal interests or affiliations with a project.

Buterin expressed optimism about the progress of Zero-Knowledge (ZK) rollup teams working to attain Stage 1 by year-end while emphasizing the significance of security protocols and prudent decision-making.

Addressing governance structures, Buterin highlighted the importance of reaching a Stage 1 milestone, stressing the necessity of a 75% council threshold for overrides within the proof system. He also emphasized his confidence in the transition from multisig governance to cryptographic trust.

In a commitment to transparency, Buterin announced via Twitter that he will focus on acknowledging L2 projects that have reached the stage 1 milestone or higher in his public discussions, putting an emphasis on progress and reliability.

The original content can be found on CoinGape.