Ethereum co-founder Vitalik Buterin has reportedly sold $700,000 worth of shitcoins representing a huge chunk of the circulating supply of some of the tokens according to data posted on Etherscan on March 7.
It was reported that Buterin’s shitcoin selling spree pushed some of the tokens to plunge in prices by more than half. Accordingly, he sold 500 trillion SHIKOKU (SHIK) for 380.3 ETH ($595,448), 10 billion Cult DAO (CULT) for 58.1 ETH ($91,021), and 50 billion Mops (MOPS) for 1.25 ETH ($1,950).
#PeckShieldAlert $SHIK (SHIKOKU) has dropped -95.8%
Vitalik Buterin-labeled address has dumped ~5T $SHIK, and gained ~164 $ETH (~260k) and transferred 214 $ETH ($337k) to EthDevhttps://t.co/Uw6TA1RDKP pic.twitter.com/FuIbgGgrdA
— PeckShieldAlert (@PeckShieldAlert) March 7, 2023
Among all the shitcoins he dumped, SHIK was the most affected token as it instantly dropped by 86%. Although it has heaped a sigh of relief and its price decline has reduced to about 30% according to CoinMarketCap data.
It should be noted that the total circulating supply of SHIK is 1 quadrillion; which implies that 500 trillion offloaded by Buterin represented 50% of the current supply.
Recall that Buterin demonstrated similar action in May 2021, selling tokens such as Shiba Inu (SHIB) and Dogelon Mars (ELON), which precipitated price drops of 40% and 90% respectively.
Meanwhile, it was gathered that the tokens dumped by Buterin were freely allocated to him as airdrops in the past. Interestingly, on-chain network Lookonchain also ascertained the action of Buterin as well as the total values of tokens swapped for Ethereum.
vitalik.eth (@VitalikButerin) is selling his free shitcoins.
— Lookonchain (@lookonchain) March 7, 2023
Crypto Community Criticizes Buterin’s Action
Following the development, a number of individuals within the crypto community has condemned the action, stressing that projects should no longer allocate tokens to the Ethereum cofounder Vitalik Buterin.
A crypto veteran, Thor, remarked that it has been repeatedly said that tokens should not be allocated to Vitalik because he once dumped the total values of what he had in a dog project 2 years ago, leading to the price decline by 99%.
We have been over this before. Don't send tokens to Vitalik. I remember 2 years ago being in a dog project and had 45K in it, only for Vitalik to dump the chart 99%. He is ruthless. He did it to all the dog coins.
— Thor | Kirito (@Thorshammergems) March 7, 2023
Another user, Yoda, alleged that he is the biggest rugger out there who is tacitly controlled by the elite.
VB is the biggest rugger out there… is he controlled by the elite 🧐
— Yoda ⚡️Feel The Force ⚡️ (@YodaCryptoPlays) March 7, 2023
While Vitalik Buterin did not provide any valid justification for his action, it should be clearly stated that every token holder has the right to sell or hold tokens at will.