Doggy cryptocurrencies went through a bad day. Many tokens have crumbled down in price after the Buterin sell-off. Among them, Dogey-Inu crashed 100%.
Ethereum co-founder and leading creator Vitalik Buterin has been cleaning up his wallet and has sold a lot of doggy meme tokens that got sent to him without his consent, generating profits of more than $ 1 million.
This Tuesday, Buterin went through decentralized exchanges to get rid of several canine-themed cryptocurrencies that people usually send to his wallet.
According to various media, the developer sold hundreds of billions of tokens of Shih Tzu (SHIH), Dogey-Inu (DINU), Kishu Inu (KISHU), Baby Shiba (BHIBA), Aidi Inu (AIDI), Small Doge (SDOG), Jejudoge (JEJUDOGE), among others.
Etherscan data confirms that many of these sales happened through platforms like Uniswap and Gnosis, from where Buterin exchanged the funds of said tokens for wrapped Ethereum (WETH).
Most of those cryptocurrencies crumbled down after the massive sell-offs, some even with double-digit percentage losses. For example, the Shih Tzu token fell 55% in the last 24 hours, while the price of Baby Shiba crashed 76% in the same period. This data appeared in a report by CoinGecko.
However, of all those mentioned, the one that seems to register the worst fall is Doggy-Inu, which collapsed 100%, losing its entire value.
Almost $ 2 Million in Puppy Tokens
According to the medium CryptoBriefing, the massive sale of puppy coins would have a value of more than 4 million US dollars. Due to the lack of liquidity for those tokens, the total amount the Ethereum co-founder received after the sale went near $ 1.8 million.
The sudden growth experienced by Dogecoin (DOGE), the top doggie coin by market capitalization this year, sparked the explosion of many similar projects that leveraged the canine Shiba Inu image.
Many of these projects, which got launched on the Ethereum network, sent large amounts of tokens to Buterin’s wallet in the hopes of burning them or at least taking them out of circulation.
Eliminating tokens can lead to an eventual boom in the price since the total supply gets reduced, reducing the supply.
However, this burning tactic doesn’t seem to be working very well, especially with Buterin being critical of many of these projects.
Something similar has happened before. In May of this year, the developer got rid of large amounts of other meme coins worth more than $ 65 million, including Dogecoin’s “killer” token, Shiba Inu (SHIB).
The Shiba Inu project team had sent 50% of the coin’s total supply to a Buterin address to take half of the tokens out of circulation, a strategy to reduce supply and encourage a peal in the price of SHIB. But Buterin does not like that projects used his address for such purposes without first consulting him.
Buterin Supports Legitimate Projects
The developer went through decentralized exchanges to say good bye to the tokens. He also added Akita Inu and Dogelon Mars. However, in the absence of liquidity, Buterin opted to spend much of the fortune on various charitable projects, including a donation of around $ 1 billion in Shiba Inu tokens to the Covid Relief Fund of India.
This Tuesday, Buterin has also chosen to use part of the income from the latest token sale to help good causes. Etherscan’s transaction data shows that it spent nearly $ 200,000 buying and burning 8% of Proof of Humanity’s supply of UBI tokens.
By: Jenson Nuñez
