Vitalik Pledges to Donate Layer-2 Tokens, Steers Clear of New Investments

Vitalik Buterin, Ethereum’s co-founder, has clarified his stance regarding his recent cryptocurrency activities, addressing emerging theories about his movements in the crypto space. Buterin stated that all Layer-2 tokens or other project tokens in his possession would be donated to support public goods within the Ethereum ecosystem.

This declaration follows his recent transfer of 2.1 million Starknet tokens, valued at approximately $858,000, to a new wallet. Additionally, he unlocked 1.268 million STRK, worth around $470,000, from Starknet’s grant, which has sparked discussions about a possible selloff. Notably, Buterin is a seed investor in Starknet.

Commitment to donation

In a recent post on X, Buterin revealed that he has not sold any tokens for personal gain since 2018. He emphasized that all sales executed have supported various projects he deems valuable. Buterin confirmed that this approach would continue for Layer-2 or other project tokens in his wallets. He pledged that the proceeds from these tokens would be donated to support public goods within the Ethereum ecosystem or other charitable causes.

Buterin further vowed to avoid investing in Layer-2 tokens or token projects shortly. As he explained, his primary goal is to channel funds into projects that he considers valuable, particularly those parts of the ecosystem that might be undervalued. He addressed suggestions that he could invest in projects with positive externalities and use the profits for good. However, he argued that there are better ways to leverage funds for philanthropy, stressing that the gains from such a strategy might not outweigh the benefits of setting a clear example.

Significant ETH movements

Before committing this, Buterin had transferred $10 million worth of Ether to an exchange. According to Arkham Intelligence, approximately 422,000 ETH, valued at $1.04 billion, have been moved from his linked wallet since 2015. Of this, 840,000 ETH were transferred from the address in the last two years.

These significant transfers align with the Ethereum Foundation’s recent activities, which saw the organization shift 84,000 ETH, worth approximately $207 million, to exchanges in August. Historically, such large transfers of ETH have the potential to influence market reactions.

Ethereum market trends

Ether’s price has declined by over 18% in the past 60 days, reflecting broader market trends. However, ETH remains up by 4% year-to-date. At the time of writing, ETH is trading at an average price of $2,378, with a 24-hour trading volume of $13.41 billion, which has decreased by 5%.

This latest development adds to the ongoing discussions about Buterin’s role in the cryptocurrency space and the potential impact of his actions on the market. While his commitment to supporting public goods within the Ethereum ecosystem is clear, the broader implications of his token movements and the Ethereum Foundation’s actions remain a topic of interest for the crypto community.

The post Vitalik Pledges to Donate Layer-2 Tokens, Steers Clear of New Investments first appeared on Coinfea.