On March 7, on-chain observers noticed that Vitalik Buterin, the co-founder of Ethereum, had allegedly sold billions and trillions of airdropped ERC20 tokens, resulting in a profit of an estimated value of $700,000. Market liquidity for airdropped tokens was shallow, and the value of relatively unknown ERC20 tokens plummeted after Buterin reportedly sold the funds.
Crypto Speculators Question Motives Behind Vitalik Buterin’s Airdropped Token Mass Sale
According to a record of token transfers associated with an address labeled “VB”, 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 show you address associated with Buterin sold billions of cult dao tokens (CULT), billions of MOP, billions of kiboshib (KIBSHI), trillions of dingo (DINGO) and trillions of shikoku (SHIK) tokens. A chain picture Arkham Intelligence also shows that other unknown low liquidity coins from chains like Binance Smart Chain (BSC) were also sold.
chain watchers noted that the address associated with Buterin was selling tokens with low liquidity and small market caps during the course of the day. Blockchain security and data analytics company Peckshield also reported on sold tokens that originate from the wallet associated with Buterin. Peckshield noted that the price of shikoku (SHIK) fell 95.8% against the US dollar. Some token supporters complained that Buterin voluntarily drove the price of these coins down, while others argued that they were Buterin’s funds and that he could do whatever he wanted with them.
“Not sure what they were expecting, their wallet, their money, LOL,” one individual said. saying.
Some speculated that Buterin may have sold the airdropped tokens to comply with taxes. “Seems like a strange move, he is more than aware this would plunge prices and drain liquidity,” a Twitter user. saying. “My guess is that his accountant warned him that these chips would count as income on his tax sheet. I am selling to cover expenses.”
Others criticized Buterin’s decision, suggestion that the coins could have been sent to a burned address to be destroyed instead. In May 2021, Buterin donated $1 billion worth of shiba inu tokens (SHIB) to India’s charity Crypto Covid Relief Fund after receiving the tokens during the token launch.
Coincidentally, following Buterin’s sale of illiquid ERC20 tokens, the Balvi Philanthropic Fund, co-founded by the creator of Ethereum, donated $15 million in USD Coin (USDC) to the University of California, San Diego. Donated funds will be used to research and study airborne pathogens. Kimberly Prather, atmospheric chemist and professor at UC San Diego, expressed his gratitude Buterin and the Balvi Fund for their donation in stablecoins.
What do you think about the sale of airdropped tokens by Vitalik Buterin? Share your thoughts in the comments section below.
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