Ethereum co-founder Vitalik Buterin earlier today donated $1 billion towards the COVID relief in India and the proceeds of the donation came from the sale of meme coin Shiba Inu. A majority of these meme coins were donated by the founders of the project to Buterin’s wallet as a promotional gesture to gain more mainstream traction. However, this massive sell-off has triggered a selling spree that threatens to end the meme coin frenzy seen over the past month.
After selling a significant portion of $SHIBA from his $8 billion holdings, Buterin is now selling Dogecoin too. And people are following the Ethereum co-founder’s lead and panic selling as well.
— Julien Bouteloup (@bneiluj) May 12, 2021
Dogecoin is currently trading at $0.39 down 20% over the past 24 hours and nearly 50% from its ATH. The meme currency started the meme coin frenzy after rising from $0.045 to a new ATH Of $0.76 on several exchanges. The massive price surge was pre-dominantly aided by Elon Musk’s continuous shilling followed by may til toke traders buying in the frenzy. The massive success of Dogecoin led to the creation of several other meme currencies such as Shiba Inu and Akita Inu and they gained instant success as well.
Is it End of Road for Meme Currencies
This bull season has seen various types of altcoins surge to new highs in different phases that started with Ethereum, NFT tokens, privacy coins, and now meme coins. Each altcoin bull cycle came to an end and this seems to be the end of the road for meme currencies.
Shiba Inu hugged the limelight for its mammoth 1500% surge over the past week, and the founders have sent a significant portion of the market supply to Buterin’s wallet that rose to a valuation of over $8 billion. While these meme currencies have no particular use case and an infinite supply, the recent surge has led to many organizations adding Dogecoin as a payment. However, crypto proponents have been warning against these tokens as well as amateur investors heavily investing in them and the recent rug pull is evident enough that those warnings were genuine.