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
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.
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