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Why Vitalik Made a 500 IQ Play Today With the 1 Billion Dollars Donation

Etherum Reddit

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If you've been following the news lately, you would see articles written on how Vitalik Buterin has donated 1 billion dollars with Shibacoins he was given. Now onto the reasons why this was a really smart move:

  1. The end of Meme Investing and people falling into the pump and dump crypto schemes. Vitalik, by donating the Shibacoins away, crashed the price immediately after the announcement was made. Now onto the reason why "meme coins" are bad. Meme coins are a shell of a useless ERC-20 token that anyone could make in minutes if they were willing to spend $200 upfront. The creators of these tokens then pay influencers on social media apps, pumping up the price; when the price is high enough, they sell, causing a massive crash as everyone runs to the doors to exit their position. "Meme coins" should be completely purged from the crypto space, I myself take investing to be an extremely serious topic, therefore I believe the cryptocurrency space should be kept for only serious projects that are providing value to society.
  2. The second reason why the donation was a smart play is that the country he donated Shibacoins to, India, had been planning on banning cryptocurrencies as a whole. With the donation being in an ERC-20 token, India would have no choice but to take the money as crypto, therefore improving the chances of the country re-allowing cryptocurrencies for its residents. This is bullish news for the crypto space in general, India being the second most populated country in the world would mean there would be more money being injected into crypto.
  3. The third and final reason, which is probably the least important and probably not good news (to miners) is that with the dump of the tokens, gas fees would be lowered. This is good news for all users of Ethereum as gas fees were trending at all-time highs the past few days, and with the announcement of the donation this morning, the gas fees have already gone down to around 120 gwei.

TLDR: With the donation of the Shibacoins, Vitalik effectively has begun a fight against meme pump and dump coins, began a campaign to re-allow cryptocurrency use in India and lower the transaction gas fees.

submitted by /u/wallstreetdumbass
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