On March 7, on-chain observers reported that Vitalik Buterin, co-founder of Ethereum, sold billions and trillions of airdropped ERC20 tokens for an estimated $700,000 worth of profits from the sale of the tokens. Market liquidity for airdropped tokens is shallow, and the relatively unknown ERC20 tokens plummeted in value after Buterin reportedly sold the funds.
Crypto speculator questions Vitalik Buterin’s motives for selling airdrop tokens
According torecordsof token transfers associated with an address labeled “VB,” Ethereum co-founder Vitalik Buterin appears to have sold a substantial amount of ERC20 tokens airdropped to his address. According to Blockchain Explorerstatistics, theaddressassociated with Buterin has sold billions of Cult Dao (CULT) tokens, billions of MOP, billions of KIBSHI, trillions of DINGO, trillions of SHIK ) tokens for sale.24} Onchain Visual Arkham Intelligencealso shows that other unknown low liquidity coins from chains like Binance Smart Chain (BSC)were also sold.
Onchain observersnotedthat addresses associated with Buterin were selling tokens with low liquidity and small market capitalization on the same day. Peckshield, a blockchain security and data analytics firm, alsoreportedon sold tokens originating from wallets associated with Buterin; Peckshield noted that the price of Shikoku (SHIK) fell 95.8% against the US dollar. He noted. Some token supporters complained that Buterin willingly drove down the price of these coins, while others argued that it was Buterin’s money and he could do whatever he wanted.
“I don’t know what you guys were expecting, his wallet, his money, lol,” one individualsaid
Others speculated that Buterin may have sold the tokens that were flown in for tax compliance purposes.” “Seems like a strange move, he is more than aware that this will crash the price and drain liquidity,” said one Twitter user.” My guess is that his accountant warned him that these tokens would count as income on his tax sheet. Selling to cover expenses.
Others criticized Buterin’s decision, suggestingthat he could have sent the coins to an incineration address instead and destroyed themIn May 2021, after Buterin was presented with the tokens at their launch, he gave them to the Crypto Covid Relief of India Fund charity with $1 billion worth of Shibai Inu (SHIB) tokens.
Coincidentally, Buterin sold illiquid ERC20 tokens to theBalvi Philanthropic Fundco-founded by the creator of Ethereum, donated $15 million in USD coins (USDC) to the University of California, San Diego. The donated funds will be used for research and investigation of airborne pathogens. Kimberly Prather.