Vitalik sells 704 ETH! Ethereum Foundation enters tightening phase, five-year plan revealed

Ethereum co-founder Vitalik Buterin made a contrarian move during the market recovery by selling 704.84 ETH (approximately $1.63 million) to donate to Kanro for pandemic relief. Last week, he withdrew 16,384 ETH for a five-year plan, as the Ethereum Foundation entered a tightening phase, with him personally overseeing special projects. He still holds 235,268 ETH, but his net worth has decreased from $800 million to $569 million.

Vitalik Sells 704.84 ETH, Donates Profits to Kanro for Pandemic Relief

Ethereum co-founder Vitalik Buterin recently sold a small portion of his ETH holdings through a series of on-chain transactions, totaling over 700 tokens. These sales were tracked by blockchain analytics platform Lookonchain, which suggests that these sales appear to align with previously disclosed plans to fund long-term projects, rather than market-driven liquidations. According to Lookonchain, Buterin sold 211.84 ETH for about 500,000 USDC. He transferred all proceeds to Kanro, a charitable organization founded by Ethereum co-founders.

Kanro is dedicated to supporting research and projects combating infectious diseases, especially post-COVID-19. Buterin has consistently aimed to use proceeds from crypto asset sales for charitable causes. In January 2025, he sold 28 different meme coins, totaling about 984,000 USDC. The proceeds were donated to Kanro, further demonstrating his long-term commitment to philanthropy. This ongoing charitable activity reflects Vitalik’s attitude toward crypto wealth: viewing it as a tool to achieve social goals rather than a means for personal wealth accumulation.

After the initial ETH sale, Buterin continued to sell. Lookonchain reports he sold another 493 ETH. In total, he sold 704.84 ETH, worth about $1.63 million at current market prices. This amount is insignificant relative to his total holdings; according to Arkham’s latest data, Buterin still owns 235,268 ETH, valued at approximately $549.2 million, along with small amounts of WETH and aETHwETH.

Due to adverse market factors, asset prices declined, and his portfolio’s total value dropped below $569 million from over $800 million. Vitalik’s wealth shrank from $800 million to $569 million—a decline of about 29%, closely aligned with Ethereum’s price drop during the same period. This kind of wealth reduction is common for founders holding a single asset; Vitalik did not sell to hedge this risk, indicating his confidence in Ethereum’s long-term value.

Ethereum Foundation Tightens, Vitalik Personally Oversees Special Projects

This sale was not entirely unexpected. Last week, Vitalik posted on X (formerly Twitter) that he had withdrawn 16,384 ETH for long-term investments over the coming years. The number itself is interesting—16,384 is 2 to the 14th power—reflecting Vitalik’s appreciation for mathematical aesthetics. At current prices, this amount is worth about $37.86 million, a substantial sum.

“Over the next five years, the Ethereum Foundation will enter a relatively moderate tightening phase,” he stated. “To that end, I personally will take responsibility for some of what might otherwise be considered ‘special projects’ funded by the Ethereum Foundation.” This reveals ongoing financial adjustments within the Ethereum ecosystem. The Foundation accumulated significant ETH during the bull market, but with prices falling and expenses rising, its financial position may face pressure.

Vitalik’s decision to personally fund some projects originally supported by the Foundation is essentially supplementing Ethereum’s ecosystem development with his own wealth. Such practices are not uncommon in tech; Google founders Larry Page and Sergey Brin have also used personal funds to support experimental projects like Google X. However, for decentralized blockchain projects, founders deeply involving personal wealth in ecosystem development raises questions about decentralization.

He explained that these funds will support open-source, secure, and verifiable hardware and software development across fields including finance, communications, governance, operating systems, secure hardware, and biotechnology—including personal health and public health initiatives through Kanro. Buterin also mentioned exploring secure decentralized staking solutions to gradually increase funding, implying he may stake some ETH to generate steady income rather than sell all at once.

Vitalik’s Five-Year Funding Plan

Open-source hardware and software: Supporting secure and verifiable tech development

Finance and Governance: DeFi infrastructure and governance tools

Communications and Operating Systems: Privacy communications and secure hardware

Biotechnology: Personal health and public health research (via Kanro)

“The Ethereum Foundation will continue to focus unwaveringly on Ethereum development, keeping this goal in mind. ‘Ethereum everywhere’ is great, but the primary mission is ‘to provide Ethereum to those who need it,’ not corporate monopolization, but sovereignty and foundational infrastructure that enables cooperation rather than domination,” Buterin added. This statement underscores his commitment to Ethereum’s vision and explains why he is willing to support it with personal wealth.

Sales Did Not Impact Market, ETH Rises 5%

Meanwhile, Vitalik’s ETH sales seem not to have directly affected the asset’s market performance. As the second-largest market cap cryptocurrency, Ethereum continues to follow overall market trends, which are showing signs of recovery. According to BeInCrypto Markets data, ETH has risen about 5% in the past 24 hours. At press time, its trading price is $2,312.6.

This price movement, decoupled from Vitalik’s sales, highlights two key facts. First, the 700 ETH sold is trivial compared to Ethereum’s daily trading volume of millions of ETH, insufficient to impact the market significantly. Second, the market has become accustomed to Vitalik’s regular sales for charity and ecosystem investments; such transparent and purpose-driven sales are not seen as bearish signals.

Vitalik’s transparency is crucial. He announced his withdrawal plans in advance on social media, explained the use of funds, and publicly executed the transactions on-chain. This transparency alleviates concerns about “founder exit scams.” In contrast, many project founders secretly sell tokens, which, once discovered, trigger panic and price crashes. Vitalik’s approach sets a standard for responsible founder management.

The market’s recovery during his sales also indicates he is not trying to maximize timing. If he aimed for maximum profit, he would sell at ETH’s peak around $4,000, not at the relatively low $2,300. This “second-best” timing suggests his motivation is genuine: he needs funds to execute plans, not to cash out at the high.

For ETH holders, Vitalik’s sales can even be seen as a positive signal. His willingness to support ecosystem development with personal wealth demonstrates his confidence in Ethereum’s future. If he were bearish, a rational move would be to sell all holdings and switch to other assets, rather than selling less than 0.3% of his position for charity and ecosystem support.