Vitalik Buterin, the mastermind behind Ethereum, is busy selling a mountain of shitcoins that he received unsolicited. The amount involved is about $700,000 in tokens from various projects that hope to get Buterin’s attention by sending him free coins. The founder of Ethereum apparently doesn’t like that, because he sold those coins hard this week.
$700,000
That does not alter the fact that it is of course wonderful to receive $ 700,000 worth of free crypto from projects that only want your attention. For most investors, an amount of $ 700,000 is the ultimate dream, while for someone like Vitalik Buterin that is really peanuts.
On March 7, according to Etherscan, Buterin’s wallet sold 500 trillion SHIKOKU (SHIK) for 380.3 ETH ($595,448), nearly 10 trillion Cult DAO (CULT) for 58.1 ETH ($91,021) and 50 billion Mops (MOPS) for 1.25 ETH ($1,950).
Due to the low liquidity within these tokens, the Buterin dump had a huge effect on prices. Take SHIK, for example, which fell 95 percent after Ethereum’s founder sold.
With this, Buterin effectively pronounces a death sentence on the projects in question. You can say that he shouldn’t do such a thing, but then again, of course, it’s not for him to keep bad projects alive. The tokens belonged to Buterin and if he wants to sell them, that’s his right.
Shiba Inu and Dogelon Mars
It is not the first time that Buterin has sold a mountain of shitcoins in this way. Earlier, the big man behind Ethereum did the same with Shiba Inu, the memecoin that competes with Dogecoin, and Dogelon Mars (ELON). Those dumps resulted in drops of 40 and 90 percent, respectively.
While some in the industry don’t like Buterin dumping his tokens in this way, there are others who understand. Not only from a moral point of view, but also from a tax point of view.
In some countries you also have to pay income tax on airdrops. If you then wait too long before selling, you may have paid tax on a token that is then worth nothing at all.