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Ethereum cofounder Vitalik Buterin has sparked reactions online after he dumped free meme coins he received for ETH. According to an update from Lookonchain, a data analytics platform, Vitalik Buterin has sold some meme coins for $96,400. The proceeds have been converted to Ethereum.
Vitalik Buterin Meme Coin Dump sparks reactions
The meme coins were likely airdropped to Buterin’s wallet by the creators to attract attention at the time of launch. It also makes the project appear more legitimate when associated with a notable personality like the Ethereum cofounder.
Buterin has now sold the free meme coins and converted them to Ethereum, which amounts to 22.14 ETH. The move appears strategic as it signals that Buterin is more comfortable storing value in ETH than keeping the meme coins.
He might have concerns about the performance of the meme coin and may have decided to move whatever value it has now to a more stable crypto asset like Ethereum, which is less volatile.
Buterin pulled a similar exit move with two meme coins in September. He offloaded Puppies tokens for 28.58 ETH and ERC20 tokens for $13,900. He has not been known to keep meme coins in his wallet for long, as highlighted by the case of Shiba Inu.
Some online community members within the Ethereum space have speculated that it could imply that Vitalik Buterin does not support or care about meme coins. They argue that Buterin’s action could trigger a price drop for those meme coins, as holders could interpret the move as a negative signal.
Despite these diverse opinions, market observers note that converting to Ethereum remains a strategic move. As of press time, one Ethereum exchanges hands at $4,337.10, which represents a 0.4% decline in the last 24 hours. The coin dropped slightly from a peak of $4,411.18 due to market volatility.
Investors are treating the drop as a buying opportunity as trading volume has increased by 6.38% to $43.75 billion within the same time frame.
Investors embrace Ethereum as a store-of-value asset
Meanwhile, Ethereum is gaining traction as an asset of value to store wealth among industry players.
Recently, the famous author of "Rich Dad Poor Dad," Robert Kiyosaki, has added the asset to his list of preferred investment picks. Kiyosaki, while slamming stocks and bonds, listed Ethereum alongside Bitcoin, gold and silver.
This shift suggests that the coin is gaining a reputation as a strategic asset among investors in the crypto space.
Dan Burgin
U.Today Editorial Team
