- Ethereum Foundation denies involvement in a $12.8M ETH sale from an old ICO-era wallet, clarifying it no longer controls the address.
- Foundation holdings have dropped from 9% of ETH supply in 2014 to under 0.3%, with recent strategic sales directed to corporate entities.
- Vitalik Buterin warns that rising corporate ETH ownership could pose systemic risks if reserves become overleveraged.
The Ethereum Foundation is making it clear — they didn’t just dump $12.8 million worth of ETH from some old ICO stash. On-chain sleuths had spotted two transactions moving a combined 2,975 ETH from a wallet tied to the Foundation’s early allocations, sparking chatter about a quiet sell-off. But Co-Executive Director Hsiao-Wei Wang quickly stepped in, saying the wallet’s not theirs anymore.
Back in 2014, the Foundation held around 9% of the total ETH supply from the ICO. These days, that figure is under 0.3%, thanks to years of planned reductions. Wang’s message was simple: yes, the wallet’s history traces back to them, but they no longer control it. That separation matters — it keeps today’s strategy distinct from Ethereum’s early distribution.
Old Wallets, New Owners
The flagged address got its ETH in 2017 from another wallet linked to the Foundation, which is why it caught people’s attention. But the team has been clear — current sales come from active, controlled addresses. A good example was last July’s on-chain move of 10,000 ETH to SharpLink Gaming, now the second-largest corporate ETH holder. That deal was part of their deliberate approach to reduce holdings without rocking the market.
Corporate treasuries have been snapping up ETH lately. Public companies now hold over $14 billion worth, shifting a meaningful chunk of supply into regulated, transparent hands. For the Foundation, that’s a win — it spreads out ownership and reduces their direct sway over governance.
Vitalik’s Warning on Corporate Risk
Ethereum’s co-founder, Vitalik Buterin, has mixed feelings on this trend. Sure, big companies holding ETH can boost adoption and open the door for traditional investors. But there’s a darker side: if these companies start overleveraging ETH as collateral, it could set up nasty domino effects. In a downturn, forced liquidations could tank the market faster than anyone’s ready for.
For now, ETH is on a tear — trading at $4,776, up 30% in the last week and sitting just 2.35% shy of its all-time high. The Foundation’s leaner share shows how its role has shifted over the years, even as Ethereum keeps charging ahead.
