- Vitalik Buterin sold several meme coins, earning 257.1 ETH ($636,000), aligning with his policy on unsolicited tokens.
- Buterin’s recognition of meme coins like EBULL and MOODENG raised concerns about promoting risky, non-transparent crypto projects.
- Crypto figures warn that endorsements from prominent figures can inflate token prices, putting small investors at risk.
Ethereum co-founder Vitalik Buterin recently sold several meme coins, generating 257.1 ETH, which is approximately $636,000, according to Lookonchain data. The coins, sent to Buterin without solicitation, were sold as part of his longstanding policy to either sell or donate unsolicited tokens.
Consequently, this move has sparked discussion in the cryptocurrency community, particularly due to concerns about the risks posed by meme coins and their potential to mislead investors.
vitalik.eth(@VitalikButerin) sold some tokens received for free again and got 257.1 $ETH($636K)!
Sold 330,000 $MSTR for 114.1 $ETH($282K).
Sold 14M $POPCAT for 74.99 $ETH($186K).
Sold 14B $ITO for 36.55 $ETH($90K).
Sold 1.05M #ETH6900 for 15.37 $ETH($38K).
Sold 50.53B $SATO for… pic.twitter.com/oZgi8xcNfr— Lookonchain (@lookonchain) October 12, 2024
Meme Coins Sold in Bulk
Notably, the blockchain data reveals that Buterin sold several types of meme coins, including 330,000 MSTR for 114.1 ETH ($282,000) and 14 million POPCAT for 74.99 ETH ($186,000). Other sales included 14 billion ITO for 36.55 ETH ($90,000), 1.05 million ETH6900 for 15.37 ETH ($38,000), 50.53 billion SATO for 11.34 ETH ($28,000), and 10 billion Milo for 4.77 ETH ($12,000).
Subsequently, these transactions have drawn attention because of the sizable sums involved and the growing debate over the dangers associated with meme coins.
However, while Buterin’s actions align with his previous remarks about unsolicited tokens, critics argue that his recognition of certain meme tokens could have unintended consequences. Recently, Buterin acknowledged two meme coin projects, EBULL and MOODENG, for their charitable donations, which raised eyebrows in the crypto space.
More so, both projects donated a percentage of their tokens to charity, with MOODENG focusing on anti-airborne disease technology. But some investors are worried that such endorsements may lend legitimacy to projects that may not be entirely transparent or safe for retail investors.
Potential Risks for Investors
Conversely, notable figures in the cryptocurrency community have voiced their concerns about the potential risks associated with these meme coins. Crypto personality, Rug Muncher, pointed out the price spike in the EBULL token following Buterin’s endorsement, which led to an influx of new investors.
More scammed proceeds for Vitalik to dump on the community and number go up. $EBULL pic.twitter.com/07xIYr2uQf
— Crypto Rug Muncher (@CryptoRugMunch) October 10, 2024
Moreover, he warned that this type of exposure could benefit insiders who could sell their holdings at inflated prices, leaving smaller investors at risk. Rug Muncher emphasized the importance of transparency and thorough vetting of projects before prominent figures offer their endorsement.