The foundation that sold its ETH holding at the top discloses its spending
The Ethereum Foundation has released a detailed financial report disclosing its expenses in 2021 and its total holdings. The company also disclosed spending items after selling some of its holdings right at the top of the Ethereum rally.
As of March 31, 2022, the foundation’s treasury was at approximately $1.6 billion, as the report suggests. The major portion of its holdings were in cryptocurrencies, while only $300 million were non-crypto assets.
Ninety-nine percent of the foundation’s cryptocurrency holdings are held in Ethereum, which also accounts for nearly 0.3% of total Ethereum supply. The fund manager noted that it follows a conservative cash management policy, which suggests that the funds are betting on the long-term performance of Ethereum as an asset while leaving room to fund all of their goals even during a multi-year market downturn.
But despite being pro-Ether, the foundation sold part of its crypto holdings in favor of non-crypto savings right at the top. Some Ethereum community members suspected the foundation of insider trading. In the report, EF states that the decision to sell Ether in favor of non-crypto holdings was taken because of high ETH prices.
The fund still holds a massive amount of Ether in its treasury despite nasty market conditions, as the company believes in the long-term potential of the second largest cryptocurrency in the market.
The biggest spending of the fund was L1 research and development. According to its report, they spent almost $22 million on it, while spending only $2 million on L2 research and development. The second biggest spending was community development, as EF spent almost $10 million on it.
