Shitcoins are similar to counterfeit coins because they do not function properly and can be a waste of money. And Vitalik Buterin, one of the founders of Ethereum, is fully aware of that fact.
Because of this, he decided to liquidate the meme coins that he had been given as a gift, which was a move that caused shockwaves to be sent throughout the cryptocurrency world.
According to the data (1) provided by Lookonchain, Buterin just completed a sale of over $700,000 worth of shitcoins. These sales consisted of Cult DAO (CULT), Mops (MOPS), and Shikoku (SHIK).
vitalik.eth (@VitalikButerin) is selling his free shitcoins.
Currently sold 50B $MOPS for 1.25 $ETH($2K), sold 10B $CULT for 58 $ETH($91K), sold 500T $SHIK for 380 $ETH($600K).https://t.co/SboWZsO8WY pic.twitter.com/xNaRTeVM7K
— Lookonchain (@lookonchain) March 7, 2023
Why Vitalik Buterin Is Dumping His Shitcoin Holdings
Buterin has made it a habit to get rid of vast amounts of money routinely sent to his address by less significant projects.
The co-creator of Ethereum is fully aware of the fact that removing free meme coins has the potential to reduce prices and significantly reduce liquidity dramatically.
Some people are under the impression that he is selling the property in order to compensate for the expense, given that the revenues will be shown as income on his tax return.
Several people are under the impression that it is related in some way to testnet coins, in particular Goerli ETH. In the past twenty-four hours, roughly half a million dollars worth of gETH was traded, bringing the total number of gETH in circulation to 11.88 million. The data was obtained via DEXTools.
Buterin got rid of 90% of his Shiba Inu (SHIB) in 2021 and made a vow to give the remaining 10% to a charitable organization.
The Effects Of Getting Rid Of Scamcoins
Meme coins are a type of cryptocurrency frequently made as a joke or for fun and are not necessarily backed by any underlying value or utility. Meme coins can also be created just for the sake of their amusement.
Offloading shitcoins, which refers to the act of selling or swapping them for yet another coinage or property, can have a variety of different effects due to a variety of factors involved such as the popularity level and liquidity of the specific meme coin, the current market circumstances, and the volume of coins that are being offloaded.
If a significant number of people sell their free meme tokens simultaneously, it may decrease the value of the coin. This is because there will be an increase in the supply of the coin while there will be a fall in demand for the coin.
This effect may be increased if there are worries about the validity or feasibility of the project or if the meme coin is already undergoing an unfavorable trend.
Offloading free meme coins, on the other hand, may not substantially impact the price of the currency if there is a robust and active community surrounding the meme coin, in addition to a consistent demand for the coin.
Offloading assets may even have a beneficial effect in certain circumstances, as it may increase liquidity and trading volume, both of which may attract additional buyers and investors.
In the end, the effect of dumping free meme coins is dependent on a wide variety of factors, and before making any decisions, it is essential to take into consideration the particular circumstances as well as the market conditions.
Meanwhile, the total market cap of the crypto market was $ 1 Trillion at the time of writing this article.
