Vitalik Buterin Reveals 90% of His Wealth Is in Ethereum Amid Community Concerns

Ethereum co-founder Vitalik Buterin recently addressed concerns about Ethereum's role as a store of value, especially after scrutiny surrounding the Ethereum Foundation's (EF) recent financial activities.

Buterin revealed that about 90% of his net worth is in ETH, signaling his confidence in the cryptocurrency.

This comes amid debates within the Ethereum community regarding the platform’s significance in decentralized finance (DeFi) and the importance of ETH’s value for securing the network under its Proof of Stake (PoS) system. Some community members have expressed concern that the EF hasn’t strongly advocated for ETH as a store of value, especially in light of recent significant transactions.

One such transaction involved the transfer of 35,000 ETH (valued at $94 million) to the Kraken exchange, raising eyebrows over the potential market impact. Aya Miyaguchi, the EF’s Executive Director, explained that the move was part of routine treasury management to meet operational costs, including grants and salaries, which require fiat currency.

In response to transparency concerns, EF member Josh Stark provided a breakdown of the Foundation’s expenditures, including grants supporting the Ethereum ecosystem. The Foundation also plans to release a detailed financial report by the end of the year to address ongoing concerns.

Despite the criticism, some community members defended the EF, pointing out that its spending is relatively minor compared to Ethereum’s market cap. Meanwhile, Buterin’s views on DeFi, particularly the sustainability of yields, have also sparked discussions, with some in the community emphasizing DeFi’s critical role in the crypto space.

As these conversations unfold, Ethereum “whales” have been observed selling large amounts of ETH, further fueling discussions about the platform’s future.