Ethereum co-founder Vitalik Buterin started selling shitcoin, exchanging almost $700,000 worth of tokens previously released to him for ether (ETH).
According to to Etherscan, a wallet belonging to Buterin on March 7 unloaded 500 trillion SHIKOKU (SHIK) for 380.3 ETH ($595,448), nearly 10 billion Cult DAO (CULT) for 58.1 ETH ($91,021) and 50 billion Mops ( MOPS) for 1.25 ETH ($1950).
Due to the low liquidity of the tokens, the sales had a huge effect on their prices. The biggest price drop from the tokens was SHIK, which recorded an 86% drop after the Buterin sale according to CoinMarketCap data.
#PeckShieldAlert $SHIK (SHIKOKU) is down -95.8%
The address labeled Vitalik Buterin has dumped ~5T $SHIKand won ~164 $ETH (~260k) and transferred 214 $ETH ($337k) to EthDevhttps://t.co/Uw6TA1RDKP pic.twitter.com/FuIbgGgrdA
— PeckShieldAlert (@PeckShieldAlert) March 7, 2023
The total circulating supply of SHIK is 1 quadrillion, with the 500 trillion previously held by Buterin representing 50% of the current supply.
In May 2021, the co-founder of Ethereum initiates such unloading token sale like Shiba Inu (SHIB) and Dogelon Mars (ELON), which caused prices to drop by 40% and 90%, respectively.
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While some in the cryptocurrency community shared their disappointment with Buterin’s decision to sell given the huge effect it had on the tokens, others suggested it was motivated by the tax implications of receiving airdrops that were subject to gross income tax in most countries.
It seems like a strange move, he is more than aware that it will lower prices and drain liquidity. My only guess is that his accountant warned him that these symbols would count as income on his tax return. Selling to cover expenses
— SecureZero (@securezero) March 7, 2023
Buterin confirmed that he owned the wallet in 2018 a tweet after being accused of hoarding 75% of the Ether supply with fellow Ethereum co-founder Joe Lubin during the pre-mining token sale.
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