The Ethereum Foundation faces mounting criticism from the cryptocurrency community over its persistent selling of ETH tokens, with tensions escalating after a controversial defense by a foundation employee.
While Bitcoin and other cryptocurrencies reach new all-time highs, Ethereum's price performance has lagged behind. After starting 2024 at $2,350 and briefly touching $4,000 in December, ETH remains well below its 2021 peak of $4,878.
The latest controversy erupted when the Foundation sold 100 ETH for 336,475 DAI on January 20th. Data shows the organization has sold over $670,000 worth of ETH in early 2025 alone.
Josh Stark, a prominent Ethereum ecosystem figure, attempted to defend these sales by stating the Foundation "uses Ethereum all the time" to swap ETH for stablecoins. This explanation backfired spectacularly, drawing intense criticism from community members.
"Highly advise against saying you use Ethereum to dump $ETH, was that really the first use case that came to your mind?" wrote user @WazzCrypto on X (formerly Twitter).
The timing couldn't have been worse - shortly after Stark's comments, the Foundation proceeded with another 100 ETH sale, further angering supporters.
The controversy highlights broader challenges facing Ethereum. While competitors like Solana capture retail attention with trendy products and meme coins, Ethereum's focus on technical improvements and scaling solutions has failed to generate similar excitement.
In response to the growing backlash, Ethereum co-founder Vitalik Buterin revealed the Foundation is exploring staking options instead of selling ETH. He noted previous reluctance stemmed from regulatory concerns and potential complications during network hard forks.
The ongoing sales and community reaction raise questions about Ethereum's market position and its ability to maintain retail investor interest while pursuing technical development goals.