Vitalik Buterin Cashes Out $700K in Shitcoins to Offset Tax Expenses

• Vitalik Buterin, co-founder of Ethereum, recently sold off nearly $700,000 worth of “shitcoins” (fake coins).
• The sale sent shockwaves through the cryptocurrency community and was done in order to offset the expense on his tax return.
• Selling off shitcoins can result in a decrease in its value depending on various factors such as liquidity and market conditions.

What Are Shitcoins?

Shitcoins are fake coins that don’t work very well and can be a waste of money. They are usually created as a joke or for fun, with no underlying asset or utility backing them up.

Vitalik Buterin’s Move

Vitalik Buterin, the co-founder of Ethereum, recently sold off nearly $700,000 worth of shitcoins comprising of Cult DAO (CULT), Mops (MOPS), and Shikoku (SHIK). This move sent shockwaves through the cryptocurrency community as he had previously disposed of 90% of his Shiba Inu (SHIB) tokens and promised to donate the remaining 10% to charity.

Why Is He Doing This?

Buterin is aware that getting rid of free meme coins can significantly depress prices and deplete liquidity. It is believed that this move is being done in order to offset expenses on his tax return and include it as income. Additionally, it is speculated that this might also have something to do with testnet tokens like Goerli ETH ($0.5 million transacted in last 24 hours).

Impact Of Selling Off Shitcoins

Selling off shitcoins can have different effects depending on various factors such as the popularity and liquidity levels of the particular coin, current market conditions, and volume being offloaded at once. Generally speaking, if a large number of people sell their meme coins simultaneously then it could lead to an increase in supply and a decrease in demand which could cause its value to drop significantly.

Conclusion

Vitalik Buterin’s recent move has sparked debates across the crypto space among both supporters and critics alike. Overall, selling off shitcoins can have drastic effects depending on various factors discussed above but only time will tell if it lives up to its expectations or not.