Vitalik Buterin’s Sale of Airdropped Tokens Sparks Controversy
On March 7, 2021, Vitalik Buterin, the co-founder of Ethereum, allegedly sold billions and trillions of airdropped ERC20 tokens, resulting in a gain of an estimated $700,000 in value. The market liquidity of the airdropped tokens was shallow, and the relatively unknown ERC20 tokens plummeted in value after Buterin reportedly sold the funds.
Onchain observers noted that the address associated with Buterin was selling tokens with low liquidity and small market capitalizations during the course of the day. The blockchain security and data analytics company Peckshield also reported on the sold tokens originating from the wallet associated with Buterin. Peckshield noted that the price of shikoku (SHIK) dropped 95.8% against the U.S. dollar.
The sale of the airdropped tokens has sparked a debate among the crypto community. Some token supporters complained that Buterin willingly caused the price of these coins to drop, while others argued that it was Buterin’s funds, and he could do whatever he wanted with them. Some speculated that Buterin may have sold the airdropped tokens for tax compliance purposes. Others criticized Buterin’s decision, suggesting that the coins could have been sent to a burn address to destroy them instead.
The controversy surrounding Buterin’s sale of the airdropped tokens has raised questions about the ethics of selling tokens with low liquidity and small market capitalizations. It has also highlighted the importance of understanding the implications of selling tokens with low liquidity and small market capitalizations.
Ultimately, the sale of the airdropped tokens has sparked a debate about the ethics of selling tokens with low liquidity and small market capitalizations. What do you think about Vitalik Buterin’s sale of the airdropped tokens? Share your thoughts in the comments section below.