India receives a donation of over USD 1 billion in cryptocurrency from the co-founder of Ethereum for Covid aid
Ethereum founder Vitalik Buterin has been reported to donate more than $ 1 billion in digital currency to aid India’s fight against the Covid-19 pandemic. This is considered to be one of the greatest philanthropic activities of any single person.
Vitalik Butherin, the world’s youngest crypto billionaire, has announced his support for Indi’s fight against the Covid-19 pandemic in the form of an Ethereum-based meme-based digital currency, Shiba Inu (SHIB). This donation went to the India Covid Relief Fund, run by Polygon Co-Founder and COO Sandeep Nailwal.
Sandeep thanked Vitalik for his support in India’s fight against the Covid-19 pandemic. He tweeted and said that if all we have learned is the importance of community, therefore, we will refrain from anything that harms the community, especially the retail community involved in SHIB. He also said that we will make sure we act responsibly.
As compiled from the Forbes report, the founder of Ethereum is also said to have donated around 0.6 million US dollars in the form of Ether and Maker tokens for the fund in early April.
The donation is in the form of Shiba-Inu coins, which were created as a joke against Dogecoin. The value of Shiba Inu is up nearly 11,000% in the last month, and by late Monday’s values, 50 trillion of that would mean about $ 2 billion. But the only question that arises is how much value can $ 1 billion of a joke currency hold in the real world?
The donation to India accounted for more than 5% of the total Shiba Inu coins in circulation. That donation had a huge impact on the cryptocurrency market, causing prices to fall nearly 50% by the end of Thursday, which left the people who bought these coins in a dilemma of whether to sell or keep.
In addition, this decision to donate cryptocurrencies to charity resolved many questions among people regarding the value of such meme coins and whether it is safe to donate cryptocurrencies to charity when it is much more difficult to get liquidity from them to get instant liquidity when they need it.
Brian Mittendorf, a professor at Ohio State University who studies nonprofits and the rise of cryptocurrencies for charity, said that calculating the value of that gift is going to be a huge challenge because when you say something with a certain value connected, but it is again so cannot be liquidated, the question arises: is it a gift and is it worth the amount promised?
How will this donation affect the meme coin traders and investors?
A private investor based in India, Robert Browning, lost thousands of dollars after the donation was transferred to India. However, he has made up his mind not to let go. He has decided to keep those millions of Shiba Inu coins that he owns, which make up almost a quarter of his total cryptocurrency holdings, or maybe even more.
In a phone interview, 52-year-old Robert Browning mentioned that cryptocurrency is not for the faint of heart, he says everyone should increase their purchases and instead of complaining, just regain power.
He mentioned that he wasn’t surprised by Buterin’s decision to get rid of his Shiba Inu coin holdings, and that it was a bad idea of his to have given in so much. In theory, half of the coins were withdrawn from the market, which made them even more valuable, but also obliged Shiba Inu investors to move to another coin founder.
But he also says that they can’t even criticize what he’s done because then it would only mean that they are simply unsympathetic, to Covid, to people in India, etc.
Shiba Inu has seen remarkable growth in the cryptocurrency market over the past month, and Buterin’s remaining stake is worth about $ 9.1 billion on paper, which is far more than the Ethereum’s $ 1.2 billion worth. Dollar he owns. This is even after the most recent withdrawal it has seen.
The India Covid Crypto Relief Fund was founded by Sandeep Nailwal, a cryptocurrency entrepreneur based in New Delhi, India. He started this fund about three weeks ago after witnessing many deaths from lack of oxygen in hospitals where he volunteered. When he was just starting out, the donation came in bulk and has successfully raised around $ 7.5 million by the middle of the year this current week. Then came the 50 trillion Shiba Inu donations from Buterin. But even after Shiba Inu prices fell, the value of donated crypto is still around $ 1 billion compared to its original value of $ 2 billion.
Nailwal mentioned that they planned to sell the coins slowly so that the individual investor would not be badly affected and not have to worry about their deflationary holdings. He understands that many retail investors have invested their savings in these coins. He has planned to unload the coins in hundreds or thousands or millions of coins every day instead of unloading everything at once so that they can be careful not to depress prices.