The cryptocurrency world was rocked recently by news that Ethereum co-founder Vitalik Buterin had sold billions and trillions of airdropped ERC20 tokens, resulting in a reported gain of $700,000. This sell-off immediately triggered a dramatic price plunge for these anonymous tokens, leading to worries among crypto speculators about Buterin’s true motives. This article will explore the impacts of this sell-off on the cryptocurrency market, as well as the potential implications for Buterin and other crypto investors.
Buterin’s Airdropped Tokens
Vitalik Buterin, the co-founder of Ethereum, appears to have sold a significant amount of tokens that were airdropped to his address. Onchain observers noted that an associated address was selling tokens with low liquidity and small market capitalizations during the course of the day. This caused a wave of speculation among crypto enthusiasts who noticed that the airdropped token prices had plummeted.
The source of the tokens is unknown, but there is speculation that Buterin may have sold them for tax compliance reasons. In June 2019, he tweeted about the need to pay taxes, prompting some to suggest that the sell-off was in order to pay off any dues owed to authorities. Others suggested that coins could have been sent to a burn address instead.
Buterin has been active in philanthropic efforts over the past few months. A week ago, his Balvi Filantropic Fund donated $15 million in USD Coin (USDC) to the University of California San Diego. He also recently set up several funds to raise money for various charities and causes around the world.
It is yet unclear what prompted him to sell off these airdropped tokens. Some believe it was done for taxes, while others think it could be part of a larger charitable effort. No matter what the motives might be, it has certainly left some crypto speculators questioning what is going on and debating on whether or not this move was best for Ethereum and its users.
Vitalik Buterin’s surprise sell-off of airdropped tokens has sent shockwaves throughout the crypto market, leaving some speculators questioning his motives. The sell-off has caused prices to plummet and liquidity to become tight, creating a bearish market outlook in the short-term. Despite the uncertain future, it appears as though Buterin’s token dump has pushed the crypto market towards a more mature, regulated environment with cryptocurrency’s decentralized ledger, blockchain, technology still at its core.