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It was revealed that Vitalik Buterin, well-known as the creator of the cryptographic asset Ethereum, donated more than 1 trillion won in total at the time of the transaction. He is influential in the field of cryptocurrency, and he released a large amount of coins at once, and several Memcoins were panic selling and their prices plummeted.
Memecoin, which is based on Internet memes, contains a simple joke-like nature, but is actually traded as a crypto asset. Dogecoin, which was born in Doge, an internet mem based on Shiva pictures in 2021, surpassed the market cap of more than 40 trillion won in the second week of April 2021 as the price surged.
The success of Dogecoin has led to a number of new memecoins. Shiba Coin (SHIBA INU), which uses the name of the Shiba Inu, which is also a symbol of Dogecoin, Dogelon Mars, which imitates Elon Musk, who refers to Doji Coin, and Akita Inu, which uses Akita Inu, etc. have.
However, Memcoin is known to have fluctuating prices, and the price of Dogecoin has changed significantly just as Tesla Elon Musk CEO Twitter mentioned. As a way to solve the problem of low credibility with such crypto assets, developers are sending memecoins at will to those with strong influence in the crypto asset community.
Developers are trying to send MemCoin to a public address of a celebrity and claim that this person has a large amount of coins. On May 10, 2021, reports reported that several hundred billion dollars worth of Shibacoin, Akita, and Dojironmas were sent to Buterin.
The developers of Memcoin would have been aiming for Buterin to continue to hold a large number of coins. However, Buterin donated large amounts of coins, including Ethereum, to charities and projects around the world. Buterin donated 13,292 ETH, meaning $54 million worth of Ethereum at the time of transaction, to the US non-profit charity, Givewell, and transferred 1,000 ETH and 430 billion ELON to the Methuselah Foundation, a non-profit organization for longevity research. In addition, 1,050 ETH goes to the Machine Intelligence Research Institute, 500 ETH and KRW 50 trillion SHIB go to the India Covid-Crypto Relief Fund, and a subsidy program focusing on Ethereum. Donated 49 trillion AKITA to Gitcoin. Of course, Memcoin is difficult to exchange immediately due to its high price fluctuation and low currency liquidity.
However, Buterin simply donated Memecoin, but the fact that Buterin sold the coin is said to be causing panic selling. According to Coinmarketcap, which discloses the price fluctuations of crypto assets, SHIB plunges more than 38%, ELON more than 70%, and AKITA more than 50% according to buterin donations. The memecoin holders were hit hard.
On the other hand, some speculate that the purpose of protecting the Ethereum platform was behind Buterin’s donation of massive meme coins. It is pointed out that SHIB and other Memecoins use the Ethereum blockchain for token generation and investor issuance, and Ethereum transaction fees have been pushed as the platform use has expanded as the demand for Memcoin increases. In order to solve this problem, there are claims that Buterin donated to charities to remove the liquidity of memecoin, which has become a hype that will lead to the collapse of memecoin. Related information can be found here.
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