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- Ethereum co-founder Vitalik Buterin sold nearly $700,000 worth of “shitcoins” that were airdropped to him without his permission, causing a significant drop in their prices.
- Some in the crypto community speculate that Buterin’s move was influenced by the tax implications of receiving airdrops, while others criticized the sale for negatively affecting the market.
- In 2021, Buterin also sold tokens such as Shiba Inu (SHIB) and Dogelon Mars (ELON), which caused their prices to drop. However, he also invested in Dogecoin and made over $4 million in profits from his $25,000 investment.
Vitalik Buterin, the co-founder Ethereum, recently sold his massive stock of numerous shitcoins that were previously airdropped to him—his offloaded collection was worth nearly $700,000 or approximately ₱36.6 million.
Airdrops usually do not need permission from the receiver. It is a method used by companies to introduce the tokens to future enthusiasts and potential investors for free. (Read more: What is an Airdrop?)
As per the data from Etherscan, a block explorer and analytics platform, Buterin’s wallet dumped billions of shitcoins on March 7th including, 500 trillion SHIKOKU (SHIK) for 380.3 ETH (around $595,448 or ₱32.8 million), nearly 10 billion Cult DAO (CULT) for 58.1 ETH ($91,021 or ₱5 million), and 50 billion Mops (MOPS) for 1.25 ETH ($1,950 or around ₱100,000). He confirmed his ownership of the wallet in 2018.
As the value of the coins relies on principles of supply and demand, the sudden huge sale which flooded the market had an immense effect on the shitcoins’ prices.
According to CoinMarketCap data, the coin SHIK had the largest price drop where it fell by 86%.
In 2021, Buterin also initiated selling tokens like Shiba Inu (SHIB) and Dogelon Mars (ELON) which also resulted in its price drops of 40% and 90% respectively.
While some members of the crypto community are not happy with his move as it affected the market, some commented that his initiative may be influenced by the tax implications of receiving airdrops.
“Seems like a strange move, he is more than aware this would tank prices and drain liquidity. My one assumption is that his accountant warned him these tokens would count as income on his tax sheet. Selling to cover the expense,” SecureZero tweeted.
Although the Ethereum co-founder has been purging meme coins in his wallet, he actually invested in one in 2021. The coin was the popular Dogecoin where he made more than $4 million in profits from his $25,000 investment. (Read more: Ethereum Co-Founder Invested $25K Early in Dogecoin, Made $4 Million in 2021)
This article is published on BitPinas: Ethereum Creator Vitalik Buterin Sells Nearly $700K Worth of Airdropped “Shitcoins”
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.