According to data from block explorer Etherscan, a wallet linked to Ethereum founder Vitalik Buterin removed over 2 trillion Shiba Inu tokens ($40+ million) from Uniswap today, causing the token to plummet in value; SHIB has lost 20% of its value immediately after the move.
— Crypto Mac ❄️🐺 (@MacnBTC) May 12, 2021
In the early trading hours of Wednesday, a host of observant crypto pundits observed big transactions emanating from Buterin’s wallet, with one of the more important changes coming as the Ethereum network co-founder withdrew liquidity from the SHIB liquidity pool on Uniswap and started selling tokens.
Vitalik’s Big Swap
As the morning continued, Buterin’s wallets were seen making a flurry of swaps and token transactions, causing market drops for the canine-themed pack and a jump in Ethereum Network fees as traders rushed to lock in income.
While some traders might be irritated by Buterin’s decision to divest, the broader crypto community welcomed the change, noting that the latest speculation around the dog-themed coins has pushed up transaction costs on the Etheruem network this week.
Since, rather than the anonymous hacker rug pull that crypto is notorious for, funds from the meme token sales have been donated to numerous organizations like Gitcoin, Give Well, and the India Covid relief project, Buterin is likely to encounter less backlash from the sales.
What is SHIB?
The SHIB coin was launched in August of 2020, but little is known about its creator, Ryoshi.
The maker wrote in a SHIB “woofpaper,” also recognized as a white paper, that “we have the potential to outpace the valuation of Dogecoin, massively, without ever touching the $0.01 level.”
Ryoshi says that he does not own any coins and that after making the currency, he gave half of the coins to Vitalik Buterin, the co-founder of Ethereum. In principle, Buterin would be able to manipulate the price on his own and crash SHIB’s valuation if he sells all of his shares. Buterin was given this influence on purpose.