- Ethereum just broke $3,000.
- Yet the Ethereum Foundation is selling.
- SharpLink is the buyer.
Crypto markets are surging, Ethereum hit $3,000, but the Ethereum Foundation is selling.
Again.
The Ethereum Foundation dumped thousands of Ether for $25 million on Thursday, inciting spitting vitriol among the crypto masses.
“You don’t hate the Ethereum Foundation enough,” said pseudo-anonymous crypto hedge fund founder Digits Capital.
Still, the buyer may give Foundation critics reason to pause.
SharpLink Gaming, a publicly listed sports and casino marketing company, dished out the millions for the purchase as part of its aggressive treasury strategy to buy and hold Ether as its primary treasury asset.
The company, which pivoted to crypto in May, recently announced that they are buying “tens of millions of dollars” of Ethereum every day. Crucially, those purchases are being put back to work to earn yield in staking and restaking protocols and taken out of circulation.
Commenting on the sale, Ethereum co-founder and SharpLink’s 4-month-old Chairman Joe Lubin declared: “This isn’t a trade.”
Ethereum Foundation has come under fire last year for its perceived inability to shore up the price of Ethereum. The community has criticised its inability to increase network speed, Ether’s underperformance relative to other networks’ coins, and, of course, its continued sale of Ether.
Ethereum’s nonprofit steward has come under fire for its continued sale of Ether. The foundation aims to strengthen the ecosystem, using the funds for protocol and ecosystem research development, community grant funding, and more.
This Spring, though, it’s attempting to turn a new leaf.
The Ethereum Foundation went through significant changes this year, including switching leadership, and hiring two new co-executive directors.
“This is a change to the previous approach of the foundation that always talks about the long term and the end game,” co-executive Thomas Stańczak said. “People say we need the Foundation now.”
Later in June, the foundation laid off a portion of its staff and restructured its research and development team’s focus.
But now it’s selling.
What gives?
Ethereum Foundation and Optimism contributor Binji defended the sale.
“The Ethereum Foundation does this for operating expenses,” they said. “Major upgrades like the merge, pectra and literally everything else that makes Ethereum strong does not happen without engineers and researchers.”
Sharplink rose 13% following this announcement.
Meanwhile, Ethereum is up 8% on the day.
Zachary Rampone is a DeFi correspondent at DL News. Have a tip? Contact him at zrampone@dlnews.com.
