Key Takeaways
- Vitalik Buterin says he will never invest in L2s in the foreseeable future.
- Buterin said he would sell all L2 tokens under his holdings and donate all the proceeds to charity.
- Investors have recently started questioning Buterin about ETH’s movement from his wallets.
Ethereum co-founder Vitalik Buterin said he does not intend to invest in Layer-2 (L2) projects in the foreseeable future. He added that he would sell all L2 tokens in his wallet, and the sale proceeds would go to public goods within the Ethereum ecosystem or broader charity.
Buterin’s comments came in response to accusations of selling Ethereum (ETH) on the market, as his ETH holdings have fallen by hundreds of millions in the past few years.
Vitalik Buterin Dismisses Involvement in ‘Plot’ to Support Any Random L2
Vitalik’s decision not to invest in L2s surprised many in the crypto community. Quiver Trade CEO questioned Buterin’s strategy and said it is better to invest in L2 projects he believes in, and then use the profits and returns for the charity purpose.
The Ethereum co-founder clarified that the decision not to invest in L2s is not about profits. He added that it is more about having a more unambiguous stance and setting a standard: “I’m not part of some plot to twist the Ethereum protocol in directions that benefit random infra/L2 tokens that I hold.”
Buterin added that the return from investments in L2s is real, but it’s a short-sighted goal. The bigger picture is setting a clear standard for the community.
Buterin noted that there are better ways to leverage out of giving money. He said instead of investing money in L2s; he could donate it to projects in exchange for commitments to be positive-sum toward Ethereum or humanity.
The Ethereum co-founder is a known philanthropist who has donated millions of dollars to various charities using crypto tokens he holds. During COVID-19, he donated almost one billion dollars to Polygon’s COVID-19 initiative in India by selling his share of Shiba Inu (SHIB) meme coins.
The SHIB meme coins were donated to him when the meme token was created. However, the value of Vitalik’s holdings soared above a billion dollars during the 2021 bull run.
Buterin Not Offloading Ether – Separating Fact from Fiction
The buzz around the Ethereum co-founder’s ETH dump began in August when Vitalik-labelled wallets transferred thousands of ETH worth millions of dollars. The first movement was recorded on Aug. 9, when the wallet sent out 3,000 ETH worth $8 million to a multi-sig wallet. Later, on Aug. 30, the Vitalik-linked wallet swapped 190 ETH for 477,000 USDC, prompting many to question the Ethereum co-founder’s actions amid the stagnant price momentum of ETH.
Vitalik Buterin held 325,000 ETH in 2021, estimated to be worth $1.42 billion, when the ETH price was trading above $4,500. However, the holdings reached 240,000 ETH in 2024, now valued at $592 million, as the ETH price is trading at the $2,500 mark.
While a few ETH enthusiasts had questioned the Ethereum co-founder’s motive amid declining holdings, meme-coin promoter Ansem sided with Vitalik. Ansem said he doesn’t understand the crypto community’s obsession with founders never selling their holdings. He added that Buterin created the second most valuable crypto: “It’s okay for him to take some profit.”
However, Buterin noted that he has not sold and kept the proceeds from his sold ETH since 2018. He added that all ETH sales since 2018 were made to support various projects within the Ethereum ecosystem or larger charitable cause.
Vitalik Buterin Defends Polymarket, Rejects Gambling Label and Praises Its Potential
