Why Ethereum’s Vitalik Is Steering Clear of L2 Investments for the “Foreseeable Future”

• Vitalik Buterin has taken a major stance on how he would support Ethereum projects from now on.
• The shift comes as the founder aims to avoid speculations of conflict.
• Vitalik’s newly announced stance has sparked a flurry of reactions online.

Balancing influence and personal interest is a delicate matter, particularly in financial spaces like crypto, where simple mentions can lead to mouth-watering gains or significant losses for investors.

In an apparent bid to find this balance, Ethereum co-founder Vitalik Buterin has taken a major public stance on how he would support Ethereum projects, including Layer 2 chains , to prevent speculation over his intentions.

Vitalik Says No More Layer 2 Investments

“I … do not intend to invest into L2s or other token projects in the foreseeable future,” Vitalik asserted in an X post on Thursday, September 5. The developer explained that instead, he would offer financial support to projects through donations going forward.

"My goal with giving projects money is to support things that I think are valuable, especially in cases where other parts of the ecosystem might undervalue them. Going forward, I plan to just do this with donations."

Explaining the rationale behind the decision, the Ethereum co-founder suggested he wanted to clarify speculations about his support for certain projects.

According to Vitalik , the switch to a donations-only approach “increases confidence that I’m not part of some plot to twist the Ethereum protocol in directions that benefit random infra/L2 tokens that I hold.”

The Ethereum co-founder’s recent decision comes as his asset transfers in recent weeks have garnered significant attention amid subpar market conditions. Some speculated that the founder was dumping on holders. In response to this speculation, however, Vitalik has asserted that he has not sold assets for profit since 2018, including Layer 2 tokens. 

Unsurprisingly, the Ethereum co-founder’s statements have sparked many reactions online.

The Epitome of Credible Neutrality?

Vitalik’s decision has been met with largely positive reactions. Responding to the move, Nazreen Mohammad, head of developer relations at Solana Optimistic Network, hailed it as the epitome of credible neutrality.

“I don’t think anyone can top this level of credibly neutral anymore,” he wrote.

Another community member, “hauru” chimed : “we don’t deserve that guy fr.”

According to Arkham Intelligence data, Vitalik’s largest known wallet holds nearly $600 million in crypto assets, the majority of which is a 240,000 ETH stash.

On the Flipside 

• While the Ethereum co-founder might not be selling, recipients would still sell these donations, albeit perhaps in tranches.

Why This Matters 

Vitalik Buterin’s decision allows him to fund and vocally support projects while avoiding a conflict of interest, allowing for greater transparency.

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