Ethereum Developer Vitalik Buterin Sold 25% Of His Coins

There is a lot of commotion going on Twitter now that Vitalik Buterin has revealed he sold 25% of the ETH he held to date. Some people see this as having no faith in the project he created, whereas others see it as a way to diversify the portfolio. No one should ever put their eggs into one basket, and developers are no different in that regard.

Vitalik Buterin Sells Part Of His Stash

TheMerkle_Ethereum Vitalik Buterin

This news does not come as a total surprise, considering the information has been out in the open for over a full day now. Vitalik Buterin openly admitted how he sold 25% of the Ethereum balance he once held, although no farther specific details were revealed as to how coins he still has right now.

The part which has some people on edge is where Buterin stated how he sees this as sound financial planning. While this is certainly true, some people see it as a sign of weakness when even the Ethereum developer is not holding onto all of his coins all the time. Then again, most of the original Bitcoin investors have liquidated part of their assets as well, so it is all a matter of how one looks at things.

Andreas Antonopoulos is the voice of reason in this discussion, as he pointed out this is a smart way for Vitalik Buterin to diversify his portfolio. No one is holding onto just one cryptocurrency with all of their money, as they either hold other coins, precious metals, fiat currency, or any other commodity as well. Diversification is a solid investment strategy for everyone.

Furthermore, selling off 25% means he still holds three-quarters of his original amount, however much that may be. We all have expenses that need to be paid, and if an appealing opportunity arises, selling is the right course of action. Everyone is free to do as they please with their financial assets in the end.

This news will probably not do the Ethereum price any favors, though, as the value keeps on declining on a daily basis. It will not take too much time until someone blames this price crash on Buterin dumping a part of his coins, which is rather short-sighted. Then again, people love to speculate and think out loud, which is part of what makes cryptocurrency so fascinating to watch.

Source: Twitter

Images credit 1,2

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  • Good for him, this is business and he is entitled to do what he wants with his personal stash.

  • animalparty

    This is disgusting behavior in my personal opinion. It is my belief that the captain should go down with the ship, if they truly believe in their product and their vision then this should be a suitable sacrifice, especially considering the amount of other peoples money riding on their dream, putting all of their faith in Vitalik. This just screams lack of confidence, 25% is a HUGE chunk of coin. Hell, I might have been okay with 5 or even 10%, but 25%? That’s crazy. Satoshi has sold none of his coins to date, but Vitalik sells 25% within the first year?! Makes me wonder if perhaps there is some negative news in the pipeline, or perhaps things are not going as planned or future challenges have presented themselves. I’m treading carefully now, I was actually going to diversify a large chunk of my BTC holdings into ETH, but I think I’ll give that a pass now. And to those passing it off as “sound diversification”, well yeah, as investors you WOULD say that. I’d be saying it too, because this is horrible news and you all know it. Expect market dumps to follow.

    • What exactly do you expect him to do with his coins? Sit on them forever? How do you expect him to pay for little things like food and rent if selling some of his stake is unacceptable?

      • animalparty

        Forever? It’s been a year twat. Like I said, if Zuckerberg did this the entire world would have laughed at him.

        • Until recently, Zuckerberg drew a salary; how do you expect Vitalik to pay his living expenses in the absence of one, if not by selling equity?

          Besides which, in late 2013, Zuckerberg did sell over 2 billion dollars worth of his Facebook stock. At the time facebook was worth about 100 billion, Zuckerberg controlling about 1/4, so that represented about 12.5% of his total, and massively more total value. I didn’t see the world laughing.

    • Vitalik =/= Ethereum.

      • animalparty

        Yes he does.

    • Maybe some of the Ethereum people learned their lesson after losing millions of dollars holding BTC from the ICO too long? Holding 75% is a very strong bullish sign by the way. Holding 100% to risk going “down with the ship” or be a “suitable sacrifice” is foolish at best. No decent trader should be that foolish, and neither should Vitalik. By the way, market dumps are from BTC rising for the most part like almost every other alt, so don’t get confused with cause and effect.

      • animalparty

        Do you know what’s bullish? Holding 100%. Not selling 25% of your stash.

  • David Roon

    Of course this is sound financial planning.
    As far as I know, You can’t pay your rent or anything for that matter with ETH right now. The guy put a lot of bitcoin on the table for this project to happen. He has been laughed at, Ethereum has been called Vapoware and what not. And now suddenly he can’t sell anything?

    For me the real question is, where did the money go? I saw in different articles that, for example, 15K ETH went to Augur. He may have invested in MakerDAO or Digix, I don’t know.
    he has put money in bounty DAO and other projects too. So no this is not treason and yes he in entitled to earn money from his ETH stash.

    So yes I am very curious where did the ETH go. No I don’t think that using 25% of your ETH is leaving the ship.

  • Mike Bradley

    Clearly Vitalik wants to diversify his portfolio by buying Lisk that will launch in next few days. Smart Move.

  • benben

    chance he’s still have 25% and already sold 75%

  • Manoy

    This sounds to me as tricks from the whales so all of you ETH holders will sell all your keeps cheap, then whales will pump the price to the moon and then you buy back expensive. sometimes you need to think the game have some dirty tactics.

  • DoesntMatter

    Beware of Ethereum.

    It’s receiving support from big banks in an attempt to divide and conquer the crypto community.

  • bitfilm

    To be fair, who hasn’t been selling off their ETH?

    • Jon Hulka

      Me

  • Swapster_com

    Explains why the volume of both BTC and ETH were through the roof the past few days. He likely traded ETH to BTC… driving up the price of BTC and sinking ETH in the process. Crypto space is shady business.

  • читатель

    Vitalik works for big banks (the R3 consortium). This is how Ethereum got so big capitalization in so short time.