Did the Ethereum Foundation (EF) sell 10,000 ETH too cheap, costing millions, by selling 10,000 ETH for $25.7 million to SharpLink Gaming on July 10th? That’s a question well worth investigating. The price of ETH shot up over $3,000 soon after. On the surface, that feels like a huge missed opportunity. This organization, one that is supposed to be the primary innovator and exemplar in crypto finance, has dropped the ball. Was it a blunder? I think not. To me, that was a surprisingly deep and clever strategy, which tells you a lot about the EF’s longterm ambition.

Selling Too Soon? Or Just Right?

Let's be honest. We've all been there. Sold a stock, a crypto, an NFT, only to see it moon the next day. Let me tell you, that feeling is a unique form of torture. So, it's easy to look at the EF's sale and think, "Ouch. They could have timed that better." The Argot Collective's sale of 1,210 ETH at around $2,890 a pop on July 11th only adds fuel to that fire.

The Ethereum Foundation isn't some day-trading degenerate glued to a candlestick chart (no offense to any day-trading degenerates reading this!). They’re playing a better game, a far superior long game.

Decentralization Trumps Short-Term Gains

Think about it. What's Ethereum's core mission? Decentralization. A more fair and inclusive financial system that works for all. That’s a huge difference from hellbent on maximizing the price of their ETH holdings at all costs.

SharpLink Chairman Joseph Lubin gets it. His statement about the acquisition supporting the "long-term sustainability of the Ethereum network and its mission of decentralization" isn't just corporate PR fluff. And to be clear, that’s a good thing—it’s recognition that the EF’s priorities extend beyond simply maximizing profit.

This has me thinking of the halcyon days of the internet. Remember all that talk about open access versus the clutches of big tech? The public was extremely engaged about what route to support. Ethereum, just like that early vision of the internet, is still in that battle for an open future. A future where our power is decentralized, not concentrated.

The EF’s sale, viewed through this prism, isn’t a missed opportunity. It’s a message.

Sustainability Over Speculation Is Key

The EF needs funds to operate. To pay developers, researchers, and educators. To keep the Ethereum ecosystem humming. Selling ETH to fund their activities is a perfectly legitimate way to do that. To be honest, selling short of the very top is the mark of a prudent treasurer, not bungling. It suggests they're not trying to time the market, which is a fool's errand even for sophisticated institutions.

SharpLink’s dedication to staking the acquired ETH just makes it the cherry on top. By locking up those coins, they increase network security. This move not only returns these tokens to circulation but increases the circulating supply, thereby supporting the long-term health of the Ethereum network. It's a win-win.

Consider it planting seeds as a farmer would do. They might consume all the seeds for short-term pleasure, but that would be very foolish in the long run. Rather, they distribute them as seeds, water them, tend to them, and harvest a far greater bounty in the future. The EF is making a lot of smart long-term moves to plant seeds for the future of Ethereum.

Debunking the "Profit-Driven" Myth

There’s this myth that the Ethereum Foundation is like this hidden corporation that just wants to get rich. This sale debunks that myth. A purely mercenary enterprise would have maximized its return on that ETH. But the EF went down another road, a road that’s focused on the long-term health and decentralization of the Ethereum ecosystem.

I imagine her act as one that inspires great wonder. Taken together, it’s a remarkable show of faith and commitment and it should inspire tremendous confidence in the future of Ethereum. It's a move that makes me feel good, knowing that some players genuinely care about the collective progress of the blockchain world.

Perhaps much of the skepticism stems from apprehension about the overall economic situation. We're constantly bombarded with warnings of impending crises, and it's easy to project that fear onto the crypto market. The EF's actions, in my opinion, offer a glimmer of hope, a reminder that not everyone is chasing short-term gains.

The sale underscores the growing interest of institutional players. Second, it demonstrates deeply-held values toward Ethereum’s fundamentals—decentralization, security, and long-term sustainability.

So was the Ethereum Foundation’s $25M sale of Ether a stroke of genius or an adverse decision? I'm betting on genius. It’s an encouraging sign—it’s a reminder that every so often, the best decisions are the ones that save money in the long run instead of chasing a quick dollar.

Now, it's your turn. Do your own research. Support projects that align with your values. Get involved in the Ethereum community. We look forward to continuing to build a more decentralized, equitable future with you.

I'm curious to hear your thoughts. Good deal or bad deal The Pfister sale was undoubtedly a significant opportunity lost. Let me know in the comments below!