In a surprising development within the cryptocurrency landscape, Vitalik Buterin sold 5,000 Dohrnii (DHN) tokens, which he had received as a gift from Dohrnii Labs, for a staggering $124,000. This transaction prompted a significant decline in the token’s value, with DHN plummeting by half its worth shortly after the sale was completed.
This incident underscores a recurring theme in Buterin’s communication, as he has continually warned projects against sending him tokens, urging them instead to make direct charitable donations.
DHN’s Price Drops by 50%
According to a post shared on X by blockchain tracking platform Spot On Chain, Buterin executed the sale of 5,000 DHN for 65 ETH on March 18, which translates to approximately $124,000. This batch of tokens was part of 10,000 DHN distributed to him by the Dohrnii Labs Treasury on January 29.
Buterin’s receipt of these tokens for free is a strategy employed by many crypto projects aiming to increase visibility by distributing assets to influential personalities within the industry.
However, the market reacted swiftly to the sale, leading to a flash crash in DHN’s value, which fell dramatically from $38.505 to a low of $20.699. The token has since made a recovery, advancing to $43.94 before stabilizing around $39.75. Despite this rebound, DHN remains down 11% over the past week, although it has showcased an incredible increase of 3,400,535.6% over the past year, per data from CoinGecko.
As per Etherscan data, Buterin still retains the remaining 5,000 tokens, now valued at close to $190,000 based on current market rates. DHN serves as the native cryptocurrency for the Dohrnii ecosystem, a platform dedicated to cryptocurrency education built on the Ethereum network.
In light of the market fluctuations triggered by this sale, Dohrnii Labs has offered to facilitate an over-the-counter sale of the remaining holdings in an effort to stabilize DHN’s price.
Crypto Projects to Donate Directly to Charity
Buterin’s stance against receiving tokens is well-documented; he advocates for projects to directly donate to charitable causes. This approach aligns with his previous acts of generosity, including a $530,000 contribution of animal-themed meme coins to the Effective Altruism Funds’ Welfare Fund in August 2024. Later that year, he also liquidated over $1 million in meme coins, channeling the proceeds to various non-profit organizations.
In 2023, speculation circulated regarding Buterin selling substantial amounts of ETH and other digital assets. He rebuffed these claims, clarifying that any transfers from his wallets were allocated towards donations benefitting charitable and blockchain-related organizations.
Most recently, Buterin reaffirmed his commitment to philanthropy and proposed the establishment of decentralized autonomous organizations (DAOs) to facilitate community involvement in the donation process. He expressed optimism regarding the positive potential of meme coins to effect real-world change, emphasizing the importance of initiatives that harness these digital assets for good.
As the cryptocurrency market continues to evolve, the repercussions of such sales raise important questions about the dynamics of token distribution, market stability, and the role of influential figures in shaping the landscape.
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