Dogecoin knockoff altcoins tank after Vitalik Buterin dumps holdings

A set of six Dogecoin (DOGE) inspired altcoins tanked after Ethereum Co-Founder Vitalik Buterin dumped them on Uniswap exchange on Wednesday
Picture Credit: Brickken

Key Takeaways

  • Vitalik Buterin sent the prices of 6 Dogecoin knockoffs plumetting in a single dump on Uniswap
  • The creators of the meme altcoins had sent the tokens to Buterin’s public wallet for safekeeping
  • Fans of the effected tokens took to twitter to complain about Buterin’s actions

YEREVAN (CoinChapter.com) — Ethereum founder Vitalik Buterin dump his Dogecoin (DOGE) spinoff memecoins on Wednesday, causing the price of the altcoins to nosedive. 

The creators of the canine-inspired cryptocurrencies had sent him the tokens to ensure they stayed held safe in his wallet. However, rather than benefit from Buterin, they were left licking their wounds since the dump yesterday.

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Who sent altcoins to Buterin? 

Many dog-inspired token creators followed the tradition of sending a large chunk of their token supplies to the Ethereum Co-founder. 

At various points in time, Buterin received Aidi Inu (AIDI), Small Doge (SDOG), Jejudoge (JEJUDOGE), Baby Shiba (BHIBA), Kishu Inu (KISHU), and HuskyToken (HUSKY) in his public wallet. 

However, rather than hold, Buterin dumped them at the decentralized exchange Uniswap.

The total value of the altcoins Buterin dumped was over $4.3 million. 

However, due to the lack of liquidity for these small-time meme coins, Buterin received close to $1.8 million in Wrapped Ethereum (WETH) for them. 

The transaction on Uniswap included 300 trillion Jejudoge, over 223 trillion Kishu Inu370 billion Baby Shiba, and close to 120 trillion HuskyToken, according to Etherscan.

Buterin did not stop here. He then swapped 50 WETH for Proof of Humanity’s Universal Basic Income token (UBI), burning 1,871,049 UBI and taking it out of circulation.

Meanwhile, the altcoins got hit hard. One of them, Baby Shiba, tanked 72%.

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Don’t blame Buterin, altcoins. He warned you!

As expected, both the creators and the holders of the altcoins Buterin ditched were not pleased. After all, he could have opted to burn them, thus reducing the total supply in circulation and positively impacting the price. But, instead, he chose to dump a whole lot of them in the market, driving their value down.

However, the creators of these altcoins should not blame Buterin for his actions. After all, he never requested anyone to send them their project tokens, nor did he promise to hold on to them forever. 

Moreover, these altcoin fans had seen this happen before. In May, Buterin pulled the rug from under the feet of Shiba Inu (SHIB) creators when he removed over 2 trillion in Shiba Inu tokens worth over $40 million from Uniswap.

Additionally, he washed his hands off altcoins Akita Inu (AKITA) and Dogelon Mars (ELON) in a mega $63 million dump. Following the sell-off, he indulged in charity, donating $1 billion worth of Shiba Inu tokens to the India Covid-Relief Fund.

The Etherum Co-Founder even issued a warning, clearly asking people to stop sending him their tokens.

“But for anyone making coins (or DAOs, or whatever else) in the future, PLEASE DO NOT GIVE ME COINS ON POWER IN YOUR PROJECT WITHOUT MY CONSENT! I don’t want to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first),  

he had warned. 

Recommended: Shiba Inu (SHIB) soars over 40% after bottoming out last week following a whale-led dump.

Altcoin competition is in the air as Floki Inu cashes in

While the fans of the altcoins that took a hit are disappointed, other meme token founders that have sent Buterin assets are pleading with him not to do the same to them. 

“Please allow us to continue to thrive by burning, not selling, the AstroElon tokens in your wallet. The world is watching you,” 

AstroElone (ELONONE) begged.

With the competing Dogecoin-inspired altcoins already wounded and vulnerable, their counterparts were not kind to them either.

One of the recent gainers of Elon Musk’s tweets about his new puppy, Floki Inu (FLOKI), rushed to point out where its adversaries had gone wrong. 

“You simply don’t “burn” tokens to a human — no matter how legendary!” 

it tweeted. 

Additionally, to claim credibility, the FLOKI assured that they had not trusted Buterin with their tokens. Hence they are a safer bet. 

“You won’t have a Vitalik dumping on you because no single individual has such power,”  

FLOKI assured.

As more altcoin creators continue to send a large chunk of their tokens to Vitalik Buterin, we might see a repeat of this scenario again in the days to come.

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