TL;DR

The Ethereum Foundation has confirmed plans to convert 10,000 ETH, currently valued at over $42 million, through centralized exchanges in the coming weeks.
Proceeds will go toward long-term development, grants, and charitable programs.
While some critics say the move contradicts Ethereum’s vision of decentralization, others argue the transparency of the announcement shows a commitment to responsible financial management and ecosystem growth.

The Ethereum Foundation’s announcement that it will sell 10,000 ETH has triggered a wave of reactions across the industry. The plan, made public through an official notice, outlines that the conversion will be gradual and structured to avoid heavy market shocks. Proceeds will be allocated to ongoing research, developer support, community growth, and social initiatives backed strongly by the foundation itself.

Blockchain analytics firms confirmed that the first transactions have already been sent to Kraken, signaling the beginning of the sale process. At the time of transfer, the ETH was valued at around $42.7 million. Despite this movement, the foundation continues to hold more than 224,000 ETH, ensuring that it remains one of the ecosystem’s largest long-term supporters, guardians, and stewards.

Centralized Exchanges Versus DeFi Solutions

One of the main points of controversy has been the decision to rely on centralized exchanges rather than decentralized finance alternatives. Critics argue that by using platforms such as Aave, the foundation could have obtained liquidity without placing direct selling pressure on ETH markets. Marc Zeller, founder of AaveChan, expressed his dissatisfaction and suggested that the foundation “simply use Aave” instead.

Still, others point out that the chosen path offers simplicity and predictability in execution. Large-scale organizations often require operational certainty, and centralized exchanges provide liquidity depth that decentralized tools may not match under short timelines or stressed conditions.

Transparency And Long-Term Value

Supporters of the move highlight the transparency of the announcement itself. Unlike other major players who conduct transactions quietly, the Ethereum Foundation published its intentions beforehand, allowing the market to anticipate and prepare carefully.

Foundation representative Binji emphasized that the sale is minor compared to the overall ETH supply and even smaller than recent institutional purchases. He argued that reinvesting these funds into research, developer onboarding, and grants will ultimately strengthen Ethereum’s position as the leading smart contract platform worldwide.

By reinvesting capital back into innovation and infrastructure, the foundation asserts that the ecosystem gains resilience, more user adoption, and a stronger network effect, an outcome that benefits holders far beyond short-term price fluctuations or speculative pressures.

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Filed under: News - @ September 3, 2025 11:30 am