Vitalik Buterin Sells $1 Million in Meme Coins: What’s the Reason?

Vitalik Buterin, the co-founder of Ethereum, has sold a significant portion of meme coins, donating the proceeds to his charity, Kanro.

The collection of 28 meme coins, valued at approximately $984,000, was sold yesterday, sparking volatility in the cryptocurrency market.

Vitalik Buterin Sells $1 Million in Meme Coins

According to BeInCrypto, the sale caused significant price swings among the meme coins, though no consistent pattern emerged. Some tokens lost over 50% of their value, while others saw gains exceeding 100%. This unpredictability highlights the volatile nature of meme coins in the cryptocurrency ecosystem.

A History of Charitable Sales

Buterin has a track record of using meme coin sales to support charitable causes. In December 2024, he donated 88 ETH to the Khao Kheow Open Zoo, leading to a sharp rise in the value of the MOODENG token. Similarly, in October 2024, he sold over $2 million worth of meme coins, allocating the proceeds to various charities. This time, the entire $984,000 was directed to Kanro, a nonprofit dedicated to pandemic prevention.

Focus on Pandemic Research

Since the onset of the COVID-19 pandemic, Buterin has increasingly supported research aimed at preventing infectious diseases. In 2021, he donated nearly $1 billion to pandemic relief efforts in India, cementing his commitment to public health initiatives.

Meme Coins as Tools for Charity

Buterin views meme coins as potential tools for social good rather than speculative trading. His recent sale included 80.47 trillion JSHIBA tokens worth $21,466 and 92,000 Dogecoins worth $35,233. Despite most tokens being valued at under $100,000 each, they often involve vast quantities, from thousands to trillions of tokens.

Market Impact

Buterin’s charitable actions caused turbulence in the meme coin market. For instance, the token DINU experienced a 68% drop, while ESTEE surged by over 100%. Many of these coins have small market caps and shallow liquidity, making them highly sensitive to large trades. However, the market impact was mixed, with some tokens benefitting from the attention.

A Repeat of Past Trends

While Buterin’s sales have caused market disruptions, they do not appear to be aimed at price manipulation. Historically, his selling pressure and donations have sometimes boosted token prices. The latest sales may similarly influence the market in unexpected ways as their effects unfold.

The Bigger Picture

Buterin’s actions underscore the high-risk nature of meme coins compared to other cryptocurrency assets. Despite the volatility, his use of these tokens for philanthropy demonstrates their potential to serve broader societal purposes beyond speculation.