Ethereum $3,645.6Vitalik Buterin, co-founder of , once again demonstrated his philanthropy with his latest sales. Buterin earned over $1 million USDC by selling 28 different memecoins. The proceeds were donated to the charity Kanro, which supports pandemic prevention and research.
Buterin stated, “We want to contribute to the fight against the pandemic with these donations.” While there were sharp declines in the values of memecoins after the sales, there was a notable increase in market volatility.
Effect of Sales on the Market: Sudden Falls and Fluctuations
These sales, in which Buterin generated USDC worth 1.6 million Australian dollars according to Arkham Intelligence data, had a serious impact on the memecoin market. For example, the Dodgy-Inu (DINU) price is down over 50% and is 99% below its 2021 peak. On the other hand, some tokens such as ESTEE unexpectedly increased by over 100%. However, these increases were short-lived because the market was small and liquidity was limited.
In the sales, 80.47 trillion JSHIBA tokens were converted into 21,466 USDC and 92,000 DOGE tokens were converted into 35,233 USDC. Most sales were under 100,000 USDC. Since transactions often involved trillions of tokens, they caused volatility in smaller markets but did not result in an overall market crash.
Past Donations and the Future of Memecoin Projects
This isn’t Buterin’s first large-scale charitable sale. Last December, the MOODENG token, which donated 88 ETH, showed a significant increase after the sale. It is noteworthy that Memecoin projects frequently send large amounts of tokens to Buterin. It is thought that the projects aim to gain followers by taking advantage of Buterin’s popularity. However, this often results in the coins losing value.
Buterin’s latest donation caused huge fluctuations in the memecoin market. Investors should carefully consider the impact of such sales on the market. In this period of increasing uncertainty in the cryptocurrency market, the possible consequences of large sales should be closely monitored.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
