Among memecoins, tokens that had the theme of dogs were rallying quite a bit over the past week. However, the end came abruptly after Vitalik Buterin liquidated his positions of the coins. They were gifts to Vitalik and he donated the returns to different charities.
A Sudden Change For The Dog Memecoins
On 12th May, the race among dog-themed memecoins in the charts of cryptocurrency halted abruptly. Most of the memecoins that were previously hot like the SHIB (Shiba Inu) and the ELON (Dogelon Mars) saw the prices decrease by over 40%. Vitalik Buterin, the co-founder of ETH (Ethereum), was seemingly the biggest culprit behind starting the selling.
Data from TradingView and Cointelegraph Markets have indicated that the value of the SHIB token fell by more than 40%. Currently, it trades at around $0.00002. The value of AKITA (Akita Inu) has fallen by 50% while ELON’s price saw a collapse of 90%.
Several crypto pundits who had kept an eye on the situation observed large movements originating in the wallet of Vitalik Buterin. It had happened on Wednesday in the early hours of trading. One development coming that was especially significant was when the co-founder of the ETH network got rid of the liquidity from the liquidity pool of SHIB on Uniswap. He then started selling the tokens.
As the day went on, Buterin’s wallets were seen making multiple token transfers and swaps. This led to the prices dumping for the pack of dog-themed memecoins. At the same time, this also resulted in a spike in the fees on Ethereum’s network. The major reason was traders scrambling to consolidate the profits.
The move from Buterin is largely welcomed in the crypto community. The present hype of the dog-themed memecoins this week has increased the costs of transactions on Ethereum’s network. Moreover, he donated the sales to well-known charities such as the relief fund for Covid in India, Gitcoin, and Give Well.
