Ethereum co-founder Vitalik Buterin transfers $8M in ETH while advocating security

Ethereum co-founder Vitalik Buterin has transferred 3,000 ETH, valued at around $8 million, to a multi-signature safe wallet. The reason for the transfer is unknown and speculated to be a donation.

Meanwhile, Buterin has been discussing the Ethereum roadmap frequently on X. In a recent post, the developer emphasized network security over concerns of high gas fees.

‘Vb 3’ wallet moves 3000 ETH to ‘Vitalik.eth’ wallet

Lookonchain reported on X that Vitalik transferred around $8 million in ETH to a multi-sig wallet, attracting around 0.1 ETH in gas fees (about $270). The transfer is being speculated to be a donation, but the motive remains unclear. 

Notably, a multi-signature crypto wallet requires more than two people to sign off on any transaction. The process provides additional security to funds and protects against unauthorized transfers or hacks. By using a multi-sig wallet, Buterin underlines his advocacy for security and privacy.

According to Etherscan, Buterin’s wallet, known as “vitalik.eth,” holds about 400 ETH, having a market price of at least $1 million. On August 5, Lookonchain reported that a wallet named “Vb 3” moved 3,000 ETH to vitalik.eth. At that time, the wallet’s total holdings stood at 245,223 ETH, worth about $570 million.

vitalik.eth transferred 3,000 $ETH($8.05M) to a multi-sig safe wallet 20 mins ago, possibly as a donation.https://t.co/pw8ekIYSs1https://t.co/DW4Nhmbb6Z pic.twitter.com/7Y4Dx12cDP

— Lookonchain (@lookonchain) August 9, 2024

In the past, Buterin had used a privacy protocol called Railgun for crypto transfers. The purpose of the transfers was also unknown due to the added layer of privacy used in these DeFi applications.

Buterin chooses security over gas fees

The Ethereum co-founder allegedly responded to a user on X who questioned the high gas fees on the network. His supposed response underscored security over high gas fees. “Losing 100% of your money to a wallet screw-up is more expensive than any gas fee, and more of a loss than any DeFi yield can make up for,” Buterin said.

Ethereum gas fees are at $500!

At this rate gas fees will be more expensive than $eth ????

— Layah Heilpern (@LayahHeilpern) August 5, 2024

Ethereum’s gas fees have been fluctuating, but the Vitalik calls wallet security the number one user experience (UX) issue. As per Bitinfocharts, the gas fees reached an average of $30 per transaction in March 2024. At the time of writing, it has dropped to around $2.4.

The overall fee levels in 2024 remain higher compared to 2023 despite the recent fall. However in July, for instance, Ethereum’s gas fees were at a multi-month low, possibly due to quieter network activity. CryptoQuant analyst, Woominkyu, previously underlined that Ethereum prices usually rise when gas fees increase. At the time of writing, Ethereum is priced close to $2,700, with the market anticipating higher highs during this cycle.