SHIB price plunges after Vitalik Buterin dumps dog-themed tokens


  • Vitalik Buterin received Shiba Inu tokens at his public wallet address as part of a burn mechanism.
  • The meme-coin mania has caused Ethereum gas fees to rise again, and now Buterin has decided to ditch the dog-themed tokens.
  • Shiba Inu price dropped by over 40% in the past 24 hours as the Ethereum co-founder cleaned out his crypto wallet.  

Vitalik Buterin, co-creator of Ethereum, recently became one of the world’s richest people with a net worth topping $21 billion. Although the recent price hike of Ethereum boosted Buterin’s total assets, only $1.3 billion resulted from his ETH holdings. The rest of his fortune was made up of dog-themed tokens that he was gifted. 

Vitalik Buterin regifts his dog coins

The Shiba Inu cryptocurrency creators announced in April that they had transferred half of all SHIB in circulation to Buterin. Under this process, the founders believe that they could legitimize the token and protect the circulation. 

Shiba Inu, a meme token that was launched as a Dogecoin rival, recently climbed into the top 20 cryptos by market capitalization from the social media-driven frenzy. The token, which positions itself as the “DOGE killer,” surged this week after listing on multiple crypto exchanges, including Binance, OKEx and FTX. Chinese traders have propelled SHIB price higher, with Huobi witnessing the largest share of Shiba Inu trading volume in the past week. 

Meme coins were being pushed on social media platforms like TikTok, where retail traders searched for the next Dogecoin. With the hype around canine-themed tokens and the artificially low circulation of Shiba Inu, the token received a massive publicity wave, with dozens of other dog coins created and transferred to Buterin’s public wallet as a burn activity.

At this time, the markets were unaware of what Buterin could do with the holdings of these tokens. A SHIB holder even managed to turn $17 into $6.5 million at one point as Shiba Inu price rose to an all-time high at $0.00003791. 

The Ethereum co-creator recently decided to dump the dog tokens, pulling the rug on all of the canine-themed gifts. According to Etherscan, Buterin donated 50 trillion SHIB to the India Covid Relief Fund founded by Polygon founder Sandeep Nailwal. He also set around $431 million of AKITA to public Ethereum-based fundraising platform Gitcoin.

Vitalik Buterin transaction to Gitcoin

Buterin's transaction to Gitcoin

Buterin also removed liquidity from various pools on top of transferring his holdings of the dog coins to charities. In another transaction, he converted $2 million SHIB on UNiswap to Ether and transferred significant amounts of other canine-themed tokens, including Dogelon, CoShi Inu, AkarmaruUNI and many others. 

The meme-coin frenzy has caused Ethereum gas fees to surge, which could be one of the reasons incentivizing Buterin to strike back. SHIB price plunged by over 40% in the past 24 hours, reaching $0.00001787 at the time of writing. Other dog tokens have shed more than half of their market value and could lower the canine coin mania that has captivated the crypto market in the past few weeks. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano price positioned for bullish reversal, with 100% gains in sight

Cardano price action has been some of the most dismal and disappointing out of all the major cryptocurrencies. But Cardano’s fortunes are about to change.

More Cardano News

Binance Smart Chain implements ongoing burn like Ethereum’s EIP-1559

Binance successfully concluded the Bruno upgrade v1.1.5 earlier today. A burn mechanism is now implemented to reduce the circulating supply of Binance Coin. 

More Binance Coin News

XRP nodes run by Ripple fell out of sync for over 5 hours, disrupted wallet services

Public XRP ledger nodes “s1” and “s2” run by Ripple fell out of sync with the XRP ledger for over 5 hours yesterday. Non-custodial XRP wallet Xumm was not functioning well, disrupting usage and accessibility. 

More Ripple News

Chainlink price ready to reverse, 30% upswing likely for LINK

Chainlink price seems ready for a reversal of its two-week downswing as it attempts to create a higher high. This outlook is also supported by on-chain metrics, which suggest the possibility of accumulation at the current levels for LINK.

More Chainlink News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP