Vitalik Buterin transferred 500 ETH from his vitalik.eth wallet address to Coinbase Custody. What is the purpose of that movement? Here the answer.
Messari data reveals that Coinbase Custody is currently the largest validator or “Baker” on the Tezos network. According to its Q2 2023 report, Coinbase Custody controls 15% of the total validator nodes and participates in XTZ, the native currency of Tezos, on behalf of its clients.
According to Lookonchain, a blockchain tracking company, Ethereum co-founder Vitalik Buterin recently transferred 500 ETH, valued at approximately $1.1 million, from his wallet, vitalik.eth, to Coinbase Custody, a secure platform designed for investors. institutional and large cryptocurrency holders.
Vitalik Buterin clarified that these transactions are not for personal benefit, but to donate funds to charitable causes. Such a transaction not only highlights Buterin’s philanthropic efforts, but also underscores the broader trend within the crypto community. Showing a collective commitment to harnessing wealth for the betterment of society. The movements of key figures in the world of cryptocurrencies often matter and can affect market sentiment.
Coinbase and ETF Custody
Of the 13 potential Bitcoin ETF issuers, 10 have chosen Coinbase Custody as a custodian, including newcomer Pando Asset, which filed its application with the SEC in recent days. That means Coinbase could be holding billions of dollars’ worth of Bitcoin on behalf of the funds, a level of centralization that has raised suspicions.
Armstrong rejected suggestions that having so much Bitcoin concentrated in one custodian is a risk.
“I think it’s a good endorsement for Coinbase and the trust that people place in it,” he told Decrypt, adding that Coinbase has stored “tens of billions” in cryptocurrencies over the past decade. He noted that Fidelity plans to custody its own Bitcoin; Cryptocurrency exchange Gemini has also entered the fray as custodian of VanEck’s ETF application.
“I hope other custodians are built,” Armstrong said. “I’m not worried in the short term, but in the long term, the cryptocurrency custody business will be attractive to a variety of companies and we will have more diversity in the ecosystem.”
What is Vitalik Buterin’s Opinion?
Vitalik Buterin noted that he has not sold ETH for personal gain since 2018, reaffirming his commitment to using his cryptocurrency holdings for philanthropic and project-based initiatives.
Indeed, in response to growing curiosity and potential misunderstandings surrounding his actions, Vitalik Buterin, a prominent figure in the crypto space, took to Warpcast, a popular online platform, to clarify the nature of these transactions, openly expressing his intention to contribute to the common good through the strategic use of its assets.
In this case, he clarified that transferring ETH to an exchange should not be misinterpreted as a sale for personal gain. Instead, he emphasized that the money goes toward philanthropic initiatives, nonprofits, or other impactful projects that align with his philanthropic vision. The recipients of these donations then sell the ETH to cover operating expenses.
Ethereum (ETH) Current Performance
According to CoinMarketCap, the current market price of Ethereum stands at $2,186 after experiencing a slight decrease of 0.4%.
Despite recent fluctuations, Ethereum’s market capitalization is strong, valued at approximately $262 billion. The 24-hour trading volume for ETH is around $10.57 billion. The price has experienced a 24-hour range between $2,151 and $2,251.
Finally, this move by Vitalik Buterin has caught the attention of the crypto community, generating discussions and speculation about his intentions.
By Leonardo Perez
