Ethereum Foundation Reveals It Made Yet Another Large Sale Following the Jump in ETH Price

The Ethereum Foundation, the main organization behind the Ethereum ecosystem, has taken a controversial step as the price of $ETH has risen.

In an official statement, the foundation announced that it will convert, or sell, 5,000 Ethereum ($ETH) holdings into stablecoins.

According to the announcement, this transformation will be carried out using the TWAP (Time-Weighted Average Price) feature of the CoWSwap platform, developed by CoW DAO, a decentralized finance (DeFi) protocol. This method minimizes the impact of large-volume transactions on the market, enabling sales with a more balanced average price.

The Ethereum Foundation argued that the primary purpose of this move is to fund research and development (R&D) activities, grant programs, and donations. The foundation stated that, in line with its long-term goals, it will continue to support the sustainability of the $ETH ecosystem.

The price of $ETH has risen by 6% in the last 24 hours and is currently trading at $2,211. The Ethereum Foundation is facing criticism for selling $ETH as the price increases. Additionally, the cryptocurrency community is questioning why the foundation doesn’t use $ETH directly for its payments.

*This is not investment advice.