{"id":18476,"date":"2023-03-08T21:40:26","date_gmt":"2023-03-08T21:40:26","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ethereum-co-founder-vitalik-buterins-address-sells-trillions-of-airdropped-tokens-causes-illiquid-coin-prices-to-plummet-bitcoin-news\/"},"modified":"2023-03-08T21:40:26","modified_gmt":"2023-03-08T21:40:26","slug":"ethereum-co-founder-vitalik-buterins-address-sells-trillions-of-airdropped-tokens-causes-illiquid-coin-prices-to-plummet-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ethereum-co-founder-vitalik-buterins-address-sells-trillions-of-airdropped-tokens-causes-illiquid-coin-prices-to-plummet-bitcoin-news\/","title":{"rendered":"Ethereum Co-Founder Vitalik Buterin’s Address Sells Trillions of Airdropped Tokens, Causes Illiquid Coin Prices to Plummet \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On March 7, onchain observers noticed that Vitalik Buterin, the co-founder of Ethereum, had allegedly sold billions and trillions of airdropped ERC20 tokens, resulting in a gain of an estimated $700,000 in value. The market liquidity of the airdropped tokens was shallow, and the relatively unknown ERC20 tokens plummeted in value after Buterin reportedly sold the funds.<\/strong><\/p>\n

Crypto Speculators Question Motives Behind Vitalik Buterin\u2019s Airdropped Token Sell-Off<\/h2>\n

According to a record<\/a> of token transfers associated with an address labeled \u201cVB,\u201d Vitalik Buterin, the co-founder of Ethereum, appears to have sold a significant amount of ERC20 tokens that were airdropped to his address. Blockchain explorer statistics<\/a> show that the address associated<\/a> with Buterin sold billions of cult dao (CULT) tokens, billions of MOP, billions of kiboshib (KIBSHI), trillions of dingo (DINGO), and trillions of shikoku (SHIK) tokens. An onchain visual from Arkham Intelligence<\/a> also shows that other unknown, low-liquidity coins from chains like the Binance Smart Chain (BSC) were also sold<\/a>.<\/p>\n

Onchain observers noted<\/a> that the address associated with Buterin was selling tokens with low liquidity and small market capitalizations during the course of the day. The blockchain security and data analytics company Peckshield also reported<\/a> on the sold tokens originating from the wallet associated with Buterin. Peckshield noted that the price of shikoku (SHIK) dropped 95.8% against the U.S. dollar. Some token supporters complained that Buterin willingly caused the price of these coins to drop, while others argued that it was Buterin\u2019s funds, and he could do whatever he wanted with them.<\/p>\n

\u201cNot sure what you guys expected, his wallet, his money, LOL,\u201d one individual said<\/a>.<\/p>\n

Some speculated that Buterin may have sold the airdropped tokens for tax compliance purposes. \u201cSeems like a strange move, he is more than aware this would tank prices and drain liquidity,\u201d one Twitter user said<\/a>. \u201cMy assumption is that his accountant warned him these tokens would count as income on his tax sheet. Selling to cover the expense.\u201d<\/p>\n

Others criticized Buterin\u2019s decision, suggesting<\/a> that the coins could have been sent to a burn address to destroy them instead. In May 2021, Buterin donated $1 billion<\/a> worth of shiba inu (SHIB) tokens to India\u2019s Crypto Covid Relief Fund charity after being gifted the tokens during the token\u2019s launch.<\/p>\n

Coincidentally, following Buterin\u2019s sale of low-liquidity ERC20 tokens, the Balvi Filantropic Fund<\/a>, co-founded by Ethereum\u2019s creator, donated $15 million in USD Coin (USDC) to the University of California San Diego. The donated funds will be used to research and study airborne pathogens. Kimberly Prather, a UC San Diego atmospheric chemist and professor, expressed gratitude<\/a> to Buterin and the Balvi Fund for their donation in stablecoins.<\/p>\n

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\nTags in this story
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airborne pathogens<\/a>, atmospheric chemist<\/a>, Balaji Srinivasan Philanthropic Fund<\/a>, Binance Smart Chain<\/a>, Blockchain Explorer<\/a>, Blockchain security<\/a>, Burn Address<\/a>, Crypto Covid Relief Fund<\/a>, Cryptocurrency<\/a>, CULT DAO<\/a>, data analytics<\/a>, Digital Assets<\/a>, Dingo<\/a>, ERC20 Tokens<\/a>, Ethereum<\/a>, Kiboshib<\/a>, Kimberly Prather<\/a>, low liquidity<\/a>, Market Capitalizations<\/a>, market volatility<\/a>, MOP<\/a>, Peckshield<\/a>, shiba inu<\/a>, Shikoku<\/a>, Stablecoins<\/a>, Tax compliance<\/a>, token holders<\/a>, token transfers<\/a>, University of California San Diego<\/a>, usd coin<\/a>, Vitalik Buterin<\/a><\/div>\n<\/div>\n

What do you think about Vitalik Buterin\u2019s sale of the airdropped tokens? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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