Home / News / Crypto / Altcoins / Buterin Sells All Remaining MKR After Two Years of Inactivity — Profit Taking or Exit?
5 min read

Buterin Sells All Remaining MKR After Two Years of Inactivity — Profit Taking or Exit?

Published September 4, 2023 11:44 AM
Teuta Franjkovic
Published September 4, 2023 11:44 AM
Key Takeaways
  • Ethereum co-founder Vitalik Buterin sold his entire MakerDAO MKR tokens for 353 ETH, approximately $580,000.
  • The transaction has intrigued the crypto community, sparking speculation about its intent.
  • MKR has surged over 9% in the past week, making it one of the top-performing digital assets.

Ethereum co-founder Vitalik Buterin sold all of his MakerDAO (MKR) tokens for 353 ETH ($581,000), sparking conjecture in the cryptocurrency world about his reasons for doing so.

MakerDAO’s MKR token, one of the best-performing digital assets, has increased  by more than 9% during the last week.

Buterin Sells MKR

One of the most well-known companies in the decentralized finance (DeFi) sector is MakerDAO, which has solidified its position. The protocol has gained the confidence of the cryptocurrency community because of its native MKR token and the DAI stablecoin.

Recent developments involving Vitalik Buterin and MakerDAO’s NewChain project may alter the narrative. Buterin sold all his MKR tokens for 350 ETH (approx. $581,000) using CoWswap, a surprising move that’s drawn significant crypto industry attention.

Data from Etherscan  reveals that Buterin’s Ethereum address traded 500 MKR for 353 ETH, equaling around $580,000, as first noticed by blockchain monitoring company Lookonchain.

The sale is Buterin’s first MKR-related transaction in more than two years and comes after a protracted period of lethargy.

Buterin last sold MKR tokens in 2021 , donating 100 MKR to the Covid disaster relief fund in India. In 2018, he bought approximately 1,071 MKR tokens when they were priced at $905 each. With the current price at $1100, it seems he’s made a profitable investment.

An Overview Of Divesting

There is a long history of Vitalik Buterin selling off his stakes in digital assets. It was discovered in August that he had sold 600 ETH, worth almost $1 million, on the cryptocurrency exchange Coinbase.

Market observers closely watched the transaction, speculating that it exerted downward pressure on ETH’s price during a challenging period. He also transferred about 200 ETH  to Kraken in March and dumped a number of unwanted altcoins, trading them for about 439 ETH.

New Crypto-Based Project or Just Profitable Taking?

However, the sale has piqued the interest of leading crypto community members, including Tron Network founder Justin Sun, with many questioning the motive.

While some speculate that this could be a retaliatory move, this appears improbable, considering Buterin’s previous endorsements  of the Solana network.

Alternatively, some interpret this as a bearish indicator and a lack of faith in MakerDAO’s strategies while others are being bullish . Some also perceive MKR as overpriced and ETH as undervalued.

MKR has been a top performer recently, gaining 9.1% in the last seven days. The positive performance of the token is due to protocol developments and the introduction  of SubDAOs in Korea.

Some people have suggested that this might be in revenge for recent remarks  made by MakerDAO co-founder Rune Christensen.

Christensen highlighted Solana’s technical excellence, tailored for NewChain’s efficiency and drawing from blockchain development experience.

He praised Solana’s resilience after FTX and its thriving developer community, ensuring long-term viability and reduced maintenance costs. Solana’s adaptability is evident in projects like Pyth, which utilizes a customized Solana backend.

“The last phase of Endgame is the launch of a native blockchain for Maker with the codename NewChain. It will make the ecosystem more secure and efficient. After some research, I believe the Solana codebase should be considered as the basis for NewChain,” he said .

Is NewChain from MakerDAO the cause?

Christensen has been a major supporter of MakerDAO’s proposal as they have lately accelerated the development of NewChain . The upgrade to MakerDAO’s Endgame depends on NewChain. The full re-implementation of the Maker protocol within a new blockchain ecosystem is Endgame’s ultimate goal.

This marks a significant protocol shift, especially considering Christensen’s endorsement  of Solana’s codebase for NewChain, signaling a move away from Ethereum and a commitment to exploring alternative blockchains to enhance functionality.

He said that the creation of a native blockchain for Maker with the working name NewChain is the final stage of Endgame. The ecology will become safer and more effective as a result. “I’ve done some study, and I think the Solana codebase ought to be the foundation for NewChain,” he stated .

MKR Great Performance

MKR token has recently seen excellent performance, rising 10%  over the last week. Buterin selling his MKR assets caused a huge decline in price for the cryptocurrency, falling by about 4% over the course of a day. Additionally, the MKR token’s network expansion also saw a significant fall.

The decline revealed a decline in new addresses’ enthusiasm for MKR trading. A measure of the token’s trading frequency called MKR’s velocity also indicated a slowing.

Was this Article helpful? Yes No