• Ethereum co-founder Vitalik Buterin allegedly sold billions and trillions of airdropped ERC20 tokens, resulting in a gain of an estimated $700,000.
• Blockchain explorers show that the address associated with Buterin sold various low-liquidity coins from chains like Binance Smart Chain.
• Crypto speculators questioned the motives behind the token sell-off and criticized the move for tanking prices and draining liquidity.
Ethereum Co-Founder Vitalik Buterin’s Token Sell-Off
Observed Onchain Transaction
On March 7, onchain observers noticed that Vitalik Buterin, the co-founder of Ethereum, had allegedly sold billions and trillions of airdropped ERC20 tokens, resulting in a gain of an estimated $700,000 in value. The market liquidity of the airdropped tokens was shallow, and the relatively unknown ERC20 tokens plummeted in value after Buterin reportedly sold the funds.
Reaction From Crypto Speculators
Crypto Speculators Question Motives Behind Vitalik Buterin’s Airdropped Token Sell-Off According to a record of token transfers associated with an address labeled „VB,“ Vitalik Buterin appears to have sold a significant amount of ERC20 tokens that were airdropped to his address. Blockchain explorer statistics show that he sold billions of cult dao (CULT) tokens, billions of MOP, billions of kiboshib (KIBSHI), trillions of dingo (DINGO), and trillions of shikoku (SHIK) tokens. An onchain visual from Arkham Intelligence also shows that other unknown low-liquidity coins from chains like Binance Smart Chain (BSC) were also sold. Some speculated that Buterin may have sold the tokens for tax compliance purposes while others criticized him for tanking prices and draining liquidity instead of sending them to a burn address to destroy them.
Butterlin Donates $1 Billion Worth Of SHIB Tokens
In May 2021, Buterin donated $1 billion worth of shiba inu (SHIB) tokens to India’s Crypto Covid Relief Fund charity after being gifted the tokens during their initial coin offering (ICO).
Conclusion
Butterlin’s selloff caused shockwaves across crypto markets as investors struggled to comprehend why such an influential figure would take such action. While some speculated it was done for tax compliance reasons others felt it could have been handled differently by sending them to be burned rather than selling them off causing prices to plummet due to low liquidity levels. However Butterlin did eventually donate $1 billion worth SHIB token which was well received by many in the crypto community