Ethereum’s co-founder Vitalik Buterin has once again stirred the cryptocurrency market with his recent meme coin sales. Over $1 million worth of 28 different meme coins were sold from wallets linked to Buterin, causing unexpected price movements across the board.
Meme Coin Volatility: Gains and Losses
Buterin’s sales have triggered sharp price changes in the meme coin market. Typically, low-liquidity meme coins tend to decline when large quantities are sold. However, this time, several tokens saw unexpected rallies. For instance, Estee, a Shiba Inu-themed meme coin, surged by 112% after Buterin sold approximately $116,000 worth of the token. Similarly, Marvin Inu and other dog-themed tokens experienced significant price increases.
On the other hand, some meme coins weren’t as fortunate. Ledog, for example, plummeted by 65% following the sales, while tokens like Dogey-Inu, AstroElon, and Amaterasu Omikami also entered a downward trend.
Why Meme Coin Projects Send Tokens to Buterin
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Meme coin projects often send large amounts of tokens to Buterin’s wallets as a marketing strategy. This practice gained popularity with Shiba Inu (SHIB) in 2021, under the premise that reducing circulating supply could boost prices. However, Buterin’s actions, such as burning tokens or donating them, often defy these expectations.
For instance, Buterin’s donation of $1 billion in SHIB tokens to charity initially caused the token’s value to drop by 50%. Yet, recent sales have demonstrated a different pattern. In October 2024, Buterin’s sale of Moo Deng, an Ethereum-themed meme coin, led to a 480% surge in its price.
Where Does the Money Go?
Buterin has a history of donating proceeds from meme coin sales to charitable causes. In October, funds from similar sales were pledged to a technology charity combating airborne diseases. Earlier in August, proceeds supported effective altruism initiatives. While it remains unclear which charity will benefit from these recent sales, Buterin’s philanthropic efforts continue to make an impact.
The Market Impact
Vitalik Buterin’s $1 million meme coin sale has created a mixed bag of outcomes, with some tokens experiencing gains while others face sharp declines. The practice of sending tokens to Buterin’s wallets remains a popular yet unpredictable marketing tactic, often leading to sudden price fluctuations. For more detailed market analysis and updates, follow The Bit Journal.
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Disclaimer
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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