thecoinrepublic.com
• A massive profit of $4.3 million from his $25,000 that he put on Dogecoin in 2016.
• Dogecoin appreciated by 775% from $0.008 to $0.07. He immediately sold half of his Dogecoin and gained $4.3 million out of it.
• He donated the entire amount to GiveDirectly, soon after which the price dropped from $0.07 to $0.04.
Vitalik Buterin, the co-founder of Ethereum has revealed that he made a massive profit of $4.3 million from his $25,000 that he put on Dogecoin, 5 years ago. Dogecoin, the very first meme cryptocurrency was launched in 2013. Inspired by the infamous Shiba Inu memes, Dogecoin became a phenomenon at the start of 2021. Elon Musk and his tweets heavily pumped its price and it encountered massive inflows in the last few months.
Putting $25000 on Dogecoin was the Best Decision he Ever Made
Buterin in a recent episode of Lex Fridman Podcast, he revealed how he made $4 million out of a $25000 investment on DOGE. However, he dedicated the entire profit for charity purposes. He was extremely impressed by the people who developed the meme cryptocurrency. However, back then Buterin lacked investment proficiency. In the podcast he says that people didn’t take DOGE seriously because it didn’t have any technical merit except for being a joke inspired crypto. He recalls that it was very tough for him to disclose to his mom that he had invested $25,000 in a coin which had a dog logo. However, he mentions that it was one the best investment decisions he had ever made.
Dogecoin’s Parabolic Growth was Mainly an Outcome of a Speculative Frenzy
After being dormant for the last 4 years, Dogecoin made a sudden leap and entered into the list of top 10 cryptocurrencies back in January. The parabolic trend in it’s value was carried by the members Reddit group r/WallStreetBets who intentionally pumped the price of the crypto. Buterin also mentions that Dogecoin did really well but it all went downhill after the speculative frenzy and Elon Musk’s sudden obsession with the cryptocurrency.
The growth of the meme crypto is widely attributed to Musk. The SpaceX founder took interest in the coin after a 2019 community vote revealed that the most desirable CEO for Dogecoin may be him. All of this happened after the developers abandoned the project for over 4 years.
Buterin in the podcast said that shortly after Elon Musk started talking about Dogecoin, the market capitalization of the coin spiked to $50 million. He says that remembers being in Singapore when Dogecoin appreciated by 775% from $0.008 to $0.07. He immediately sold half of his Dogecoin and gained $4.3 million out of it. He donated the entire amount to GiveDirectly. Soon after which the price dropped from $0.07 to $0.04.