SHIB, AKITA, and other clones of Dogecoin are subject to a massive drop once Vitalik Buterin sells them off.
The Ethereum developer Vitalik Buterin has sold many of his “dogecoin,” including SHIB & AKITA. He received them instead of a burn.
This norm has been overturned since Vitalik has shown that he is not afraid to sell his “burned currencies.”
Selling across Altcoins in a Wave
After Vitalik left, a slew of small-cap cryptocurrencies followed suit; all altcoins with a canine theme experienced steep declines. SHIB was falling rapidly on Binance Futures, and the owner of the SHIB contract launched KUMA, which plunged almost 95% in a matter of minutes.
Following the market-shattering incident, Vitalik started making a series of significant gifts. In addition to making many additional sizable gifts to organizations like GiveWell and Charter Cities Institute, he gave over $1 billion in SHIB to the India Covid-Crypto Relief fund.
As a “proof of burn,” several of the Dogecoin clone creators transmitted the majority of the coin’s circulating supply to Buterin’s public address, betting that he wouldn’t dump them. This is the tale. They were mistaken, though. The aftermath appears as follows:
The Reaction on the Internet
It has been amazing to see meme currencies climb over the past few weeks, and Vitalik’s choice to market dump his coins has generated a lot of controversy.
One group of individuals defended Vitalik as the bulwark of free-market ideas, pointing out how avaricious traders wanting to make quick money in the markets received justice. Effectively, Vitalik took a sizable portion of those earnings back and gave them to organizations that undoubtedly saved thousands of lives. The fact that very risky trades don’t always work out as expected pleases more cautious traders.
The decision by Vitalik, which they perceive as being made in bad faith (given that the coins were intended to be “burned,” and that Vitalik “should have respected it”), has angered large numbers of rookie cryptocurrency traders.
Unrealized profits worth billions of dollars have been squandered by traders; one even spent $1.6K on gas to produce the ERC-20 token “F*** Vitalik Buterin.” Projects most likely won’t ever again use Vitalik’s address as a burn wallet, that much is clear”
Vitalik Buterin strikes back at doggy coins with $80m rugpull
The creator of Ethereum, Vitalik Buterin, has retaliated against the memecoins that have profited off of his reputation and clogged up his network by handing them a crushing $80 million “rugpull” that has caused their value to plummet.
In an odd attempt to gain attention or credibility, the 27-year-old Canadian billionaire early today dumped massive numbers of three dog-themed coins that had been mailed to him.
The Block reports that Buterin took 13,291 in wrapped ETH from the Uniswap exchange and sold 660 billion Shiba Inu (SHIB), 140 billion Akita Inu (AKITA), and 43 billion Dogelon Mars (ELON) tokens to generate a total of 15,719 in Ether. The deal is worth $80.8 million at a price of A$5,143 per Eth.
Then he donated a total of 16,000 Ether (or $83 million) to charity, of which 13,292 Eth (or $67 million) went to the charity rating service Givewell, and 1,000 Eth (or $5.1 million) went to the Methuselah Foundation, which conducts research into life extension.
To help India deal with its coronavirus problem, a nonprofit called Crypto Relief was founded. Another 500 Eth and 10% of his SHIB tokens were transferred to this organization.
The actions caused a sharp decline in token prices. This afternoon, SHIB had decreased by 19%, while Akita had down by 7.9%, and Dogelon had decreased by 60%.
It was reported that Buterin had contributed $1 billion to charity because of the 50 trillion SHIB tokens he delivered to Crypto Relief, which have a face value of $1 billion. But since Buterin depleted the liquidity pool, good luck attempting to sell that many SHIB tokens.
The shorter variation
Here is some background information for people unfamiliar with cryptocurrency in case all this seems a little technical and complex.
The popularity of Ethereum, the No. 2 cryptocurrency, has made Buterin a multi-billionaire, and as a result, he is frequently approached by several individuals who want to earn his attention.
The SHIB token was created by Ryoshi, who last year handed Buterin 50% of the total supply to “burn.” (The Ethereum network hosts the SHIB coin.)
According to Ryoshi, “there is no grandeur without a weak spot and as long as VB doesn’t rug us, then SHIBA will flourish and thrive” (a pun on the “white papers” common in the crypto industry).
Like Akita Inu, the Shiba Inu clones followed Ryoshi’s example. These tokens were knockoffs of knockoffs, if SHIB may be thought of as a Dogecoin knockoff.
(Buterin erred in 2018 by disclosing his Ethereum address, allowing creators of meme currencies to send him their tokens on the permissionless network.)
Sending the tokens to Buterin may have been a wise decision when the initiative was young, but in recent weeks, Shiba Inu currency has experienced a stratospheric surge as investors look for the “new Dogecoin.” With a total market cap of US$7.5 billion, it has risen to the position of No. 24 among cryptocurrencies.
The Ethereum network has been slowed down by SHIB and other meme currencies, driving up transaction costs. On average, they were $65 this afternoon.
So, after receiving the SHIB kingdom’s keys, Buterin reportedly made the decision to take action against the dog tokens.