The founder of Ethereum Blockchain, Vitalik Buterin, had donated 10% of his Shiba Inu holdings to India’s Crypto Covid Relief Fund. Apparently, these ERC20 tokens were given to Buterin to “burn” them, under the assumption he wouldn’t touch them or sell them. However, Buterin decided to put the funds to good use by donating the tokens worth more than a billion dollars to the Covid Relief Fund.
Vitalik Buterin Accused of Rug Pulling
This is one of the biggest donations made by any crypto personality to help people affected by the Covid-19 pandemic.
Despite Buterin’s philanthropic efforts, members of the community were unhappy calling it a blow to retail traders while others labeling it as a rug pull.
A rug pull is a type of scam where developers abruptly leave a project and take investors’ money with them, a common phenomenon in the world of DeFi projects.
After Vitalik’s donation, the price of Shiba Inu did slide for a fact.
In response to this, a group of developers and auditors created the Rug Ethereum (RETH) token in retaliation for Buterin’s decision to transfer millions in Shiba Inu (SHIB) while simultaneously crashing the token market.
SHIB token is run on the Ethereum blockchain, where its rising popularity contributed to high transaction fees amid Ethereum’s network congestion.
RETH Token Dumps in Favor of BNB
The RETH token is available on PancakeSwap where each transaction incurs a 4% charge, half of which goes to holders and the other half goes towards borrowing the Ether coin. That ETH coin is then dumped on DeFi lending marketplace Venus Protocol in favor of Binance Coin (BNB).
Unlike other DeFi lending platforms, Venus is built atop Binance Smart Chain and not on Ethereum blockchain. This will ultimately “create constant sell pressure on ETH pairs on BSC,” meaning the price of ETH will go lower.
As of now, RETH has more than 2,100 holders according to blockchain tracker BscScan.