This week, a digital "meme" has entered the world of charity, bringing with it huge price fluctuations and bewildering questions about whether the $1 billion joke can hold up. value or not.
Three weeks ago, Sandeep Nailwal, a cryptocurrency entrepreneur from New Delhi, established a Covid relief fund called India Covid Crypto Relief Fund after witnessing deaths from lack of oxygen in hospitals. institute in India.
Initially, the amount of donations only came "trickling". By the middle of this week, the fund had only raised $7.5 million. However, Vitalik Buterin, the founder of the Ethereum blockchain network and the famous digital currency Ether, has donated more than 50 trillion Shiba Inu – a joke that follows the famous "meme" of Dogecoin.
However, it was the donation of the founder of Ethereum that caused the price of this coin to drop by about 50%. Holders are confused as to whether to sell or not. The incident also raises doubts about the value of "memes" cryptocurrencies and whether giving charity with cryptocurrencies is a good option when their value fluctuates so much. Moreover, digital money is also a non-liquid account.
Last week, the cryptocurrency market went through many ups and downs. Tesla CEO Elon Musk caused Bitcoin to plunge after announcing he would no longer accept Bitcoin payments due to environmental concerns. A few days earlier, Musk's comments on NBC caused Dogecoin to drop 30% in price.
Despite the plunge in the price of Shiba Inu, Buterin's gift is still worth about $1 billion at the moment. Nailwal said his charity intends to gradually sell these coins so as not to affect the market.
“ Many retail investors have poured their lifetime savings into these digital currencies, ” said Nailwal. He plans to sell a few hundred thousand Shiba Inu every day, because selling them all at once will cause the price to plummet.
Robert Browning (Indian) is an individual investor who lost several thousand dollars after the above case, but he intends to stay with Shiba Inu, even to buy more. “ Cryptocurrency is not for the faint of heart ,” he said.
Since Buterin is a well-known figure in the crypto world, he is often given crypto coins every time a new coin is released as a way to advertise. Even when Shiba Inu was born late last year, half of the volume in circulation went straight to Buterin's wallet. Like the hundreds of other tokens Buterin owns in such a way, they are of very little value until a series of "memecoins" suddenly increase in price.
On paper, the number of Shiba Inu coins that Buterin owns is worth up to $ 9.1 billion - much higher than the $ 1.2 billion worth of Ethereum he currently owns. Of course, if he sold it to collect money, the price of Shiba Inu would immediately drop.
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