Vitalik Buterin Shifts Focus to Donations, Steers Clear of Layer-2 Investments

Vitalik Buterin, the co-founder of Ethereum, clarified that he will no longer invest in Layer-2 projects.

Ethereum co-founder Vitalik Buterin has clarified that he will no longer be making any Layer-2 investments. Instead, the proceeds from his Ether (ETH) sales will be donated to support public goods within the Ethereum ecosystem and other charitable causes. This decision comes amid queries about his crypto investments.

In a message on X, Buterin stated:

“All proceeds will be donated, again either to support public goods within the Ethereum ecosystem or broader charity.”

This statement explains that his cryptocurrency proceeds will go toward donations to Ethereum-related projects and other global causes, such as biomedical research.

Buterin Highlights Donations as a Greater Impact for Ethereum and Global Causes

Responding to queries about Layer-2 investments, Buterin noted his preference for funding initiatives that align with Ethereum’s core values, over seeking personal profit. He highlighted that donations can have a greater positive impact on the ecosystem.

Buterin added that there are other ways to maximize the impact of financial contributions, stating:

“There are other options to get leverage out of giving money, e.g., it can be in exchange for commitments to be positive-sum toward Ethereum and/or humanity.”

This suggests that donations are often made in exchange for valuable commitments to both Ethereum and global communities.

Vitalik Buterin Shifts Focus to Donations, Steers Clear of Layer-2 Investments

Buterin confirmed that he has no plans to invest in Layer-2 projects moving forward. By focusing on donations, he aims to avoid any conflicts of interest and maintain transparency within the Ethereum community.

He stated,

“The gains of the cycle you describe are real but seem at present less than the gains of having a clear stance.”

Vitalik Buterin’s ETH Donations Add Selling Pressure, Impacting Ethereum’s Price Recovery

Furthermore, Vitalik Buterin's comments on his ETH donations have brought some uncertainty to Ethereum's market performance. While he has clarified that the sales of his ETH are intended to support charitable causes and public projects, these donations are being sold off by the recipients. As a result, more ETH is entering the market, increasing the selling pressure on the cryptocurrency. This is particularly relevant considering the low buying interest, raising concerns about Ethereum’s ability to handle the extra supply. The increased amount of ETH being sold is making it harder for the price to recover, especially as demand isn’t picking up.

Ether Price Drops to $2,350 Amid Increased Selling Pressure and Low Buyer Interest

The current price of Ether (ETH) is $2,350.81, showing a 12.20% decrease over the past month. Recent market events, such as large ETH sales, have increased the selling pressure, contributing to the price drop. Moreover, weak buyer activity has made it harder for the market to absorb the excess supply, further impacting Ethereum's price movement.

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