Ethereum Foundation criticized for constant ETH dumps

The ethereum Foundation is coming under fire for dumping eth relentlessly, and things got worse after an employee's awkward attempt to defend the move sparked a major backlash.

ethereum is off to a rocky start in 2025 (eth). The ethereum Foundation continues to sell eth, and its defense does not sit well with the community. While bitcoin (btc) and other altcoins are hitting new all-time highs, ethereum has been stuck in the mud. eth started 2024 at $2,350, soared to $4,000 in December, and then crashed again. It's still miles away from its 2021 high of $4,878, and many investors aren't enthused.

The problem? ethereum is not capturing retail attention like its rivals. Networks like Solana (SOL), despite their ongoing technical issues, are grabbing headlines and raking in billions with trendy products like the hyped crypto smartphone, the pump.fun marketplace, or the meme coin recently launched by President-elect Donald. Trump nicknamed Official. Trump (TRUMP).

ethereum is still working to try to address its fundamental issues, such as transaction performance and scalability, with major network upgrades and layer 2 solutions like Coinbase's Base. However, its progress does not seem to capture the attention of regular retail investors.

Wrong place, wrong time

And then there is the ethereum Foundation. A non-profit organization focused on supporting various research and development initiatives within the ethereum ecosystem. Despite its good intentions, the organization's frequent eth sell-offs, conducted to cover expenses and operating costs, have raised eyebrows, especially among its loyal followers.

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One of those sales occurred on January 20, when the foundation exchanged 100 eth for 336,500 DAI. According to SpotOnChain <a target="_blank" href="https://x.com/spotonchain/status/1881285300741443740″ target=”_blank” rel=”nofollow”>datathe foundation dumped more than $670,000 worth of eth in less than three weeks in January.

The latest sale came at a bad time, with the community already fired up over some controversial comments from Josh Stark, a prominent figure in the ethereum ecosystem. He defended the foundation's constant eth sell-offs by explaining that they are actively using eth, referring to the constant exchanges of eth for stablecoins.

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The explanation was further criticized when the foundation made the sale shortly afterward, intensifying the frustration. But the community did not agree. User @WazzCrypto <a target="_blank" href="https://x.com/WazzCrypto/status/1881151575307276306″ target=”_blank” rel=”nofollow”>return on “I can’t even now.”

Another user, @VelvetMilkman, <a target="_blank" href="https://x.com/VelvetMilkman/status/1881249100383105155″ target=”_blank” rel=”nofollow”>I wasn't shy or: “(…) This is not 'using the chain' to understand how most people use the chain. Its only use cases are selling eth ffs. This has gone from being bad to downright embarrassing (…).”

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Despite the pullback, the foundation went ahead with another 100 eth sell-off, making matters worse. The user under the alias @trading_axe did not hold back: “Their brains don't actually work at all. Why do you need 300K so urgently? Why POSSIBLY, as ethereum FOUNDATION, when the whole world is watching, need 300K FROM A PUBLIC SALE ORDER? Senseless cockroaches. Challenge Dio.”

Foundation explores betting

This type of frustration highlights a larger problem with ethereum's trajectory into 2025. While competitors grow their ecosystems by capitalizing on retail FOMO, ethereum's focus on scalability across Layer 2 networks currently doesn't seem enough to attract waves of retail investors.

While it's unclear whether ethereum should go down the path of once again becoming the go-to network for meme coins, a role it once held before the hype moved to Solana, one thing is certain: the latest controversy appears to have caught the attention of the ethereum company. -founder, Vitalik Buterin.

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In a reply to x, Buterin <a target="_blank" href="https://x.com/VitalikButerin/status/1881298926650929415″ target=”_blank” rel=”nofollow”>revealed that the foundation had been considering staking its assets rather than selling them. He explained that until now they have avoided betting due to regulatory uncertainty. There is also concern about choosing sides if a network fork ever occurs, Buterin added.

Despite the focus on scaling solutions, mainstream investors don't seem impressed. The foundation's constant sell-offs of eth don't help either. Meanwhile, competitors step up and draw attention. Community trust in ethereum feels uncertain. If the network wants to remain relevant to the public, it has a difficult road ahead.