Vitalik Buterin earned 257.1 ETH worth $636,000 from selling various meme coins.
Critics argue meme coin donations may hype risky projects, creating dangers for investors.
Concerns emerge over meme coins using charitable donations to boost credibility and attract investors.
Vitalik Buterin, co-founder of Ethereum, recently sold several meme coins, accumulating 257.1 ETH, valued at approximately $636,000. Blockchain data reveals that the tokens, received for free, were sold from various meme coin projects. The sale has sparked renewed discussions about the implications for investors and the cryptocurrency community.
The transactions include sales of 330,000 MSTR for 114.1 ETH, equivalent to $282,000, 14 million POPCAT for 74.99 ETH, worth $186,000, and 14 billion ITO for 36.55 ETH, valued at $90,000. These sales align with Buterin's past approach to unsolicited token donations. He has previously stated that any tokens he receives without request will either be sold or donated.
However, Buterin's recent activities have drawn criticism from some within the crypto market. Concerns are growing that selling meme coins, particularly those tied to charitable initiatives, could inadvertently encourage risky projects.
Critics argue that while charitable donations are commendable, it could give undue attention to projects with questionable long-term viability, potentially putting investors at risk.
In recent months, Buterin praised projects like EBULL and MOODENG for their charitable efforts. Both meme tokens allocated some of their funds to charitable causes, such as supporting anti-airborne disease technology.
However, members of the crypto community have raised concerns about these endorsements. They worry that promoting lesser-known tokens might artificially inflate their value, leading to increased public investment, which may ultimately benefit insiders more than average investors.
Cryptocurrency figures like Crypto Rug Muncher have also voiced concerns. He pointed to how EBULL's value surged after Buterin acknowledged the token, attracting more investors. He warned that insiders could exploit these price hikes by offloading their holdings, leaving small investors disadvantaged.
Rug Muncher emphasized the need for transparency and thorough vetting in such projects, particularly when charity is used as a marketing strategy.
Meanwhile, Buterin has remained vocal on the Ethereum ecosystem's broader issues, recently weighing in on discussions regarding Ethereum's Layer 1 and Layer 2 fee structures.
He has called for a fairer and more balanced fee-sharing model, suggesting that Ethereum explore solutions like EIP-7762 to ensure equitable fee distribution between the leading network and Layer 2 rollups.
