Ethereum co-founder Vitalik Buterin has gone on a shitcoin selling spree, exchanging nearly $700,000 worth of tokens previously airdropped to him for Ether (ETH).
According to Etherscan, a wallet belonging to Buterin on March 7 offloaded 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 ($1,950).
Due to the low liquidity of the tokens the sales had a huge effect on their prices. The largest price drop from the tokens was SHIK, which recorded an 86% drop following Buterin’s sale according to CoinMarketCap data.
#PeckShieldAlert $SHIK (SHIKOKU) has dropped -95.8%Vitalik Buterin-labeled address has dumped ~5T $SHIK, and gained ~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 Ethereum co-founder initiated a similar offload selling tokens such as Shiba Inu (SHIB) and Dogelon Mars (ELON) that resulted in price drops of 40% and 90% respectively.
Related: Ethereum price action and derivatives data confirm bears are currently in control
While some within the cryptocurrency community shared their frustration at Buterin’s decision to sell considering the outsized effect it had on the tokens, others suggested it was motivated by the tax implications of receiving airdrops, which are subject to income tax in most countries.
Seems like a strange move, he is more than aware this would tank prices and drain liquidity. My one assumption is that his accountant warned him these tokens would count as income on his tax sheet. Selling to cover the expense
— SecureZero (@securezero) March 7, 2023
Buterin confirmed he owned the wallet in a 2018 tweet after he was accused of hoarding 75% of the supply of Ether with fellow Ethereum co-founder Joe Lubin during the token’s pre-mining sale.