Key Points
The Spot On Chain data shows that the Ethereum Foundation made its first Ethereum (ETH) sale of 2025 on January 8.
It sold 100 ETH and received 329,463 DAI tokens.
In 2024, the foundation sold a total of 4,466 ETH for $12.61 million at an average value of $2,823.
These sales often occur right before significant price drops.
Community Reaction and Vitalik Buterin’s Defense
The Ethereum Foundation faced criticism from traders for selling ETH rather than staking from their own protocol.
One user, DCinvestor, sarcastically suggested that the foundation cannot use the chain they are supposed to uphold and protect.
Another trader, eric.eth, criticized the foundation for selling ETH, suggesting they should stake ETF and use DeFi to cover internal costs.
Vitalik Buterin, Ethereum’s co-founder, defended the foundation’s actions.
He cited two main reasons for the decision not to stake ETH.
Firstly, he mentioned regulatory concerns.
As Ethereum is a leading crypto protocol, staking a significant amount of ETH could invite unwanted regulatory scrutiny.
This could raise questions about Ethereum’s status as a security, an issue many crypto firms have grappled with.
Buterin’s second reason was that staking ETH would require the Ethereum Foundation to take a stance on any future contentious hard fork.
This refers to potential divisions within the ecosystem leading to preference for one blockchain version over another.
If the foundation were to stake its tokens using one blockchain, it could be seen as endorsing that chain.
Buterin acknowledged that regulatory concerns have decreased over time, but the second reason still persists.
He also explained how withdrawing ETH could take longer than selling the tokens due to the high number of validators using the chain.
If the foundation were the only entity to withdraw ETH, it would take 2.6 days.
However, if many stakers were to withdraw simultaneously, it could take up to 58 days, especially if 20% of Ethereum stakers withdraw at the same time.