The Ethereum Foundation will sell $43 million worth of ETH to support ecosystem expansion.
Ten thousand Ethereum (ETH), or roughly $43 million, will be sold by the Ethereum Foundation (EF) to finance donations, grants, and research. The organization stated that it will divide the sale into smaller chunks over the course of the upcoming weeks in a post on X.
Centralized exchanges will be used to conduct the sale. According to EF, the funding will assist community growth and development within the Ethereum ecosystem, and the gradual approach will limit market disruption.
The Ethereum Foundation to fund research
The Ethereum Foundation revealed intentions to sell 10,000 ETH (about $43 million) in order to keep a steady stream of revenue for the Ethereum ecosystem in the face of a volatile market. Instead of considering each transaction as a one-off occurrence, it will be converted into fiat to provide consistent financing for grants, operational costs, and strategic donations.
As demonstrated by a number of transactions earlier this year and in the past, EF’s larger treasury management strategy includes the sale of 10,000 ETH. In accordance with its June-introduced treasury policy, the foundation sold $25 million worth of Ethereum to SharpLink Gaming in July and completed two further transactions totaling $12.7 million. In order to finance its work, the policy seeks to establish guidelines for the amount of ETH that the foundation may convert into fiat over predetermined time periods.
Treasury policy guides ETH sales and shapes market activity
The policy requires the foundation to establish a multi-year reserve buffer to guarantee there is always enough money for operations and commitments, and it sets a maximum of 15% yearly for operating expenses. In order to determine how much Ether can be sold in the upcoming three months, the guidelines also call for routine evaluations of the foundation’s assets in fiat terms.
ETH is now trading at almost $4,326 after rising more than 23% over the previous month. This indicates that investors are optimistic about the coin’s future. Yunfeng Financial Group claimed to have purchased a comparable quantity of ETH from the open market on the same day the foundation declared its intention to sell 10,000 of the cryptocurrency.
Ahead of its planned Nasdaq launch, Ether Machine also revealed that it has purchased 150,000 ETH to establish a corporate treasury.
Currently, the corporation has more than 345,000 ETH, worth over $1.5 billion. These transactions demonstrate how ETH is treated as a strategic reserve asset by both large corporations outside of the crypto-native community and traditional financial institutions.
Joseph Lubin, a co-founder of Ethereum, added that if Wall Street completely embraces the token, Ether may surpass Bitcoin as the most popular worldwide “monetary base.” After ETH reached its peak price of more than $4,870 in August, he made these remarks. This increase was also influenced by remarks made by US Federal Reserve Chair Jerome Powell regarding potential monetary policy adjustments, which increased investors’ willingness to take on risk.
Ethereum is becoming into a more valuable asset in the cryptocurrency space, as evidenced by the treasury policy, the increasing interest from institutional investors, and remarks made by influential people like Lubin. More significantly, as demonstrated by the sale of 100,000 ETH in December 2020, which caused Ether’s price to reach all-time highs in the months that followed, such influence could affect ETH’s market performance at various times.
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