Members of the crypto community speculated to x about why ethereum's Vitalik Buterin deposited $330,000 worth of cryptocurrency into the Railgun privacy protocol.
On April 15, blockchain monitoring tool. twitter.com/0xScopescan/status/1779808908884033631″ target=”_blank” rel=””>scopescan He noted that ethereum co-creator Vitalik Buterin transferred 100 Ether (eth) to the Railgun defi platform. The transaction was executed using Buterin's ENS tagged wallet, vitalik.eth.
Reports claim that Buterin has frequently used the protocol over the past six months, depositing small amounts of eth.
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According to DefiLlama, Railgun is an EVM dapp that enables privacy features for on-chain lending and token swaps. It employs zk-SNARK, an encryption model based on zero-knowledge technology that is used to prove that a blockchain participant owns an asset or data without revealing it.
Since launching on ethereum in January 2021, the default privacy provider has amassed nearly $35 million in total value locked.
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Railgun jumps over 147% with Vitalik Buterin backing
Blockchain developer Vitalik Buterin set the record straight about his use of Railgun as cryptocurrency advocates on social media debated the reasons behind his deposit. Some theorized that the ethereum co-founder wanted to speculate on the eth ecosystem without being traced, while others assumed he had bills to pay.
Vitalik Buterin's response said “Privacy is normal” and x.com/VitalikButerin/status/1779845886224253369″ target=”_blank” rel=””>explained that Railgun supported anonymity without compromising security.
Following Buterin's post, Railgun's native RAIL token surged over 140% according to CoinGecko. The cryptocurrency was trading for around $1.36 following the price surge.
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This is not the first time an ethereum-based token has risen in price after Buterin endorsed its underlying protocol on x or in a blog post. In January, Buterin mentioned the ethereum Name Service in defense of more reliable, Merkle-based solutions. Shortly after, the protocol's native ENS crypto surged nearly 40%.
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