Vitalik Buterin, the co-founder of the Ethereum (CRYPTO: ETH) blockchain, sold several million dollars in “dog tokens” on Tuesday.
What Happened: Buterin sold $4.3 million in Dogecoin (CRYPTO: DOGE) imitation tokens sent to his Ethereum wallet over the last few months.
According to the most recent transactions from his wallet address, the Ethereum co-founder used the decentralized exchange Uniswap (CRYPTO: UNI) to sell six variants of dog tokensÚ Aidi (CRYPTO: AIDI), Small Dogecoin (CRYPTO: SDOG), Jejudoge (CRYPTO: JEJUDOGE), Baby Shiba (CRYPTO: BHIBA), Kishu Inu (CRYPTO: KISHU) and HuskyToken (CRYPTO: HUSKY).
The prices of the dog tokens were significantly impacted following Buterin’s sale. The biggest loser was Baby Shiba, which lost 75% of its value within 5 minutes.
Buterin used some of the proceeds from the sale, which stood at around $1.8 million given the illiquid nature of the tokens, to help Proof of Humanity’s UBI project.
The UBI project is a Universal Basic Income initiative that rewards verified human identities in a decentralized manner.
Buterin used $200,000 earned from selling dog tokens to burn 8% of UBI’s token supply, thereby increasing the value in the hands of existing UBI token holders.
This isn’t the first time Buterin removed liquidity from dog tokens sent to his wallet in aid of charity. In May, he donated $1.2 billion Shiba Inu (CRYPTO: SHIB) tokens to the India Covid Relief Fund.
At the time of writing, some of the teams behind the dog tokens had put out statements regarding Buterin’s actions and their planned course of action.
“We initially sent Aidi ETH’s LP tokens to Vitalik’s wallet (The Ethereum Founder). The idea at the time was that since it was a cold wallet, it would serve as a pseudo burn address,” explained AIDI.
The project said it would slowly add liquidity to the pool to provide more stability to AIDI’s price.
Kishu Inu’s founders took issue with the fact that Buterin sold the coins gifted to him. The team pledged to recover the 250 trillion tokens sold off by buying back some amount of KISHU.
Photo: Executium on Unsplash.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.