In a candid revelation, Vitalik Buterin, co-founder of Ethereum, disclosed that he played a pivotal role in advising the Ethereum Foundation to sell approximately 70,000 ETH—worth around $100 million at the time—near the peak of the 2018 bull market. This strategic financial decision not only preserved vital capital for the ecosystem’s long-term development but also highlighted Buterin’s foresight during one of crypto’s most volatile periods.
The Strategic Sale at Market Peak
During an interview with Eric Weinstein, podcast host and managing director at Thiel Capital, Buterin confirmed:
“I did convince the Ethereum Foundation to sell 70,000 ETH, basically at the top. And now our treasury has doubled, so it was a very impactful good decision.”
At its height in January 2018, Ethereum reached a price of $1,400. Selling 70,000 ETH at that level equates to a $98 million transaction—effectively rounding to a $100 million divestment. This move allowed the foundation to lock in substantial fiat reserves just before the prolonged market downturn that followed.
Buterin emphasized that these funds were not hoarded but reinvested into core infrastructure, research, and long-term protocol development. The result? A more resilient funding model capable of sustaining Ethereum through bear markets.
Personal Holdings and Market Timing
Interestingly, Buterin himself executed a well-timed sale prior to the crash. In late December 2017, he sold 30,000 ETH—then valued at $22 million—also near the market peak. Despite holding a significant amount of ETH over the years, his personal divestment was limited and strategically motivated.
When asked about emotional reactions to price crashes and the impact on his net worth, Buterin remained composed:
“I feel pretty comfortable because I don’t think cryptocurrencies have created $500 billion worth of value yet.”
This philosophical stance reflects his broader view: technology should be judged by real-world utility, not speculative valuations.
He also clarified that he did not engage in short selling during the downturn—a tactic some other industry figures employed. Instead, his influence was exerted through institutional stewardship, guiding the foundation toward prudent financial management.
Funding Policy and Community Impact
In recent months, the Ethereum Foundation has reportedly sold an additional $1.5 million worth of ETH. More notably, it has paused direct funding to certain development teams. While this sparked speculation about dwindling reserves, analysis suggests otherwise.
With estimated annual operating expenses around $20 million and substantial holdings in both ETH and stablecoins, the foundation remains financially healthy. So why the shift?
The answer lies in policy evolution. The foundation now prefers a grants-based system where all developers—internal or external—must apply for funding. This approach promotes fairness, transparency, and decentralization by eliminating preferential treatment.
Critics argue that long-time contributors are being sidelined. However, supporters see this as a necessary step toward a more democratic and scalable governance model—one aligned with Ethereum’s ethos of open access and community-driven progress.
👉 Learn how transparent funding models are shaping the next era of decentralized innovation.
FAQ: Addressing Key Questions
Q: Did Vitalik Buterin profit personally from the Ethereum Foundation’s ETH sales?
A: No. Buterin advised the sale as part of his role in guiding the foundation’s financial strategy. The proceeds went entirely to organizational reserves and development initiatives, not personal gain.
Q: Why sell ETH instead of holding for price appreciation?
A: Holding crypto assets exposes organizations to extreme volatility. By converting part of their holdings into stable fiat or stablecoins, foundations can ensure stable funding for critical R&D, regardless of market conditions.
Q: Is the Ethereum Foundation running out of money?
A: No evidence supports this claim. With disciplined spending and diversified assets, the foundation maintains sufficient runway to support Ethereum’s evolution for years to come.
Q: How does the grants program work?
A: Developers submit proposals through public channels. A review committee evaluates based on technical merit, feasibility, and alignment with Ethereum’s roadmap. Selected projects receive funding in stages.
Q: Was selling ETH at the top purely luck?
A: While timing played a role, the decision was grounded in risk assessment and macroeconomic concerns at the time. It reflected a proactive approach rather than pure speculation.
Q: What impact did this sale have on Ethereum’s price?
A: The sale occurred gradually and was not large enough to single-handedly influence market price. Its greater significance lies in financial stewardship rather than market mechanics.
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Lessons for Decentralized Organizations
Buterin’s actions offer valuable lessons for other blockchain projects:
- Treasury diversification reduces reliance on volatile assets.
- Proactive financial planning enables survival and growth during downturns.
- Transparent funding policies build trust and encourage broader participation.
- Leadership influence should prioritize ecosystem health over short-term gains.
As more decentralized autonomous organizations (DAOs) emerge, Ethereum’s experience serves as a blueprint for sustainable governance.
Conclusion
Vitalik Buterin’s decision to guide the Ethereum Foundation toward selling ETH near its 2018 peak was more than a financial maneuver—it was a statement about responsibility in decentralized leadership. By securing capital when markets were favorable, the foundation ensured continued support for innovation, even during extended bear markets.
This episode underscores a crucial truth: long-term success in blockchain isn’t just about technology—it’s about sound economics, ethical leadership, and institutional resilience. As Ethereum evolves, its financial discipline may prove just as transformative as its technical breakthroughs.