Ethereum Foundation Transfer of 35,000 ETH: Controversy and Clarification

Bittime – The Ethereum Foundation has carried out a significant transaction by transferring 35,000 ETH which is worth approximately $96.9 million based on the current ether exchange rate.

The transaction sparked some criticism from the crypto community, with some voices raising concerns about the foundation's transparency.

However, the foundation's executive director quickly clarified that the transfer was just a routine part of the nonprofit's "cash management activities."

Ethereum Foundation Transfer Sparks Transparency Debate

Recently, the Ethereum Foundation (EF) transferred 35,000 ETH, worth $96.9 million. The funds were directed to a Kraken exchange deposit address, as identified by the Arkham Intelligence explorer.

This transaction attracted attention on the X platform when Lookonchain shared details about the move. In response, one user raised concerns about the foundation's transparency in financial disclosures.

The executive director of the Ethereum Foundation responded to X's post. "This is part of our cash management activities," answered Aya Miyaguchi.

"EF has a budget of approximately $100 million per year, which consists largely of grants and salaries, and some recipients can only receive in fiat," added the nonprofit's executive director.

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Miyaguchi further stated that tThis year, there was a long period of time when we were advised not to undertake any cash activity due to regulatory complications, and we were unable to share the plans in advance.

This transaction is also not the same as a sale. There will be planned and gradual sales from here.

Not everyone found Miyaguchi's answer satisfactory. Gabriel Shapiro, a crypto lawyer and founder of Metalex Labs, argues that despite the Ethereum Foundation (EF) spending 100 million annually, there is a lack of clear direction when it comes to maximizing the value of ethereum or even the Ethereum network as a whole.

As the Ethereum Foundation navigates criticism of its financial practices, the tension between transparency and operational needs is becoming clearer.

While some see the foundation's actions as essential to maintaining its mission, others question whether its spending is in line with the long-term growth and stability of the Ethereum network. The conversation surrounding this decision is likely far from over.

Reaction from the Crypto Community

Apart from Gabriel Shapiro and Marc Zeller, several other members of the crypto community have also responded to the Ethereum Foundation's transfer.

• Criticism of Vagueness: Some users have criticized the lack of transparency and clarity in the Ethereum Foundation's explanation of the reasons for the transfer and use of funds.

• Support for the Foundation: On the other hand, there are also those who support the Ethereum Foundation's steps, arguing that the foundation has the right to manage its finances according to its needs and strategy.

• Request for More Information: Many members of the crypto community are asking the Ethereum Foundation to provide more detailed and transparent information regarding its financial activities.

Impact of Transfers on Ethereum Price

The transfer of 35,000 ETH by the Ethereum Foundation did not have a significant impact on the overall price of Ethereum.

The cryptocurrency market is highly volatile, and many other factors influence the price of Ethereum, such as market sentiment, technological developments, and investor activity.

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Conclusion

The Ethereum Foundation transfer has sparked discussion and controversy in the crypto community. Although the Ethereum Foundation has provided an explanation regarding the reasons for the transfer, there are still questions and concerns regarding transparency and use of funds.

Future developments in this regard will determine how the crypto community views the Ethereum Foundation and the steps it takes.

Greater clarity and transparency will help build trust and confidence in these nonprofit organizations.

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