After Vitalik Buterin sold $700,000 worth of tokens, their price dropped significantly.

On March 7th, the Ethereum blockchain block explorer, Etherscan, showed that one wallet owned by Ethereum co-founder Vitalik Buterin released 500 trillion SHIKOKU (SHIK). Buterin sold off the tokens for $595,448 (380.3 ETH).

SHIK has a circulating supply of 1 quadrillion. It means that Buterin held 50% of its total supply. According to token data, the SHIK price dropped by 86% after Buterin sold the majority of its supply.

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Buterin is known for holding large amounts of crypto assets and selling them when he deems fit.

The Ethereum co-founder confirmed that a wallet mentioned above belonged to him and Joe Lubin, a fellow Ethereum co-founder. During Ether’s pre-mining sale, the man was accused of seizing 75% of the entire ETH supply.

He also sold off 50 billion Mops (MOPS) for $1,950 (1.25 ETH) and almost 10 billion Cult DAO (CULT) for $91,021 (58.1 ETH) alongside the SHIKOKU (SHIK). Following the selling spree, Buterin earned around $700,000 in one day.

March 7th was not the first time Vitalik Buterin dumped coins in this heavy manner.

In 2021, Buterin offloaded Dogelon Mars (ELON) and Shiba Inu (SHIB). The 2021 dump led to 90% and 40% price drops for those tokens, respectively.

Buterin’s actions frustrated crypto community members, and they voiced their concerns on Twitter. However, others felt he had to sell off massively because airdrops are subject to income tax and attract huge tax implications.

It is important to note that Buterin got the tokens from airdrops. Thus, they were tokens that he never asked for. These tokens originally had low liquidity before Buterin sold off massively.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

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