The cryptocurrency market was rocked on Tuesday as Ethereum co-founder Vitalik Buterin made a significant move that sent shockwaves through the industry. Buterin’s decision to sell off 5,000 DHN tokens, received for free from Dohrnii Labs’ treasury, for $125,000 worth of Ethereum on Uniswap caused the price of the DHN token to plummet by 50%.
This sudden sell-off by Buterin, a prominent figure in the crypto community, raised concerns about the legitimacy of the Dohrnii project. Some users on social media platforms accused the project’s creators and developers of manipulating the token’s price and having full control over the liquidity pool. One user even questioned the project’s fundamentals, pointing out that an educational app with only 1,000 downloads had inflated DHN’s market cap to $17 billion.
In response to the sharp drop in price, the Dohrnii team reached out to Buterin, offering to buy out his remaining DHN tokens in an over-the-counter deal to minimize future market fluctuations. However, as of press time, Buterin has not made any public statements regarding the offer.
Despite the initial sell-off, a buyback was recorded, and the price of DHN bounced back to previous levels. Currently, DHN is trading at $40, according to data from crypto price aggregators. The project, described as an “educational tool” aiming to make financial education accessible to everyone through blockchain technology and gamification, has faced scrutiny following Buterin’s actions.
The incident involving Buterin’s sale of DHN tokens highlights the volatility and risks associated with meme coins and the broader cryptocurrency market. Investors and industry experts continue to monitor the situation closely, as questions about the transparency and integrity of projects like Dohrnii persist.
As the crypto community navigates through these developments, the impact of Buterin’s actions on the market and the future of projects like Dohrnii remain uncertain. Stay tuned for further updates on this evolving story.