- There’s a new coin in town and its sole purpose according to the creators is to dump Ethereum.
- Controversy over the Ethereum founder selling his ‘gift’ meme coins continues in the crypto community.
Earlier in the week, the Ethereum co-founder made a drastic decision that impacted thousands of investors. Shiba Inu developers had opted to send part of the supply of the coin to Vitalik Buterin’s wallet as a way of taking it off the market to add value to the remaining supply. While prices were low, investors were confident Vitalik wasn’t too concerned about the tokens and was surely not going to compromise his reputation for a few bucks.
Since Dogecoin boomed, its copies rallied and the most successful of them all has been Shiba Inu (SHIB). It reached its peak with a market cap of over $13B. In a manner that has been described by some as a rug pull, at these levels, Vitalik transferred millions worth of Shiba Inu coins and donated to charity in India. As a result, SHIB crushed wiping off over 50 percent of its value in the days that followed.
There has been much controversy about the decision by Vitalik. Noble as it was, to donate to India where millions of people struggle with Covid-19, it was at the expense of innocent investors. Worth noting, Shiba Inu is an Ethereum-based project. It is part of the ecosystem that he created. Whether he is a hero or rug pull orchestrator remains a personal opinion.
Introducing Rug Ethereum ($RETH)
A few developers who have made up their mind that this is a rug pull, are calling on the crypto community to help launch a crypto project whose sole intent will be to go after Vitalik’s Ethereum. The team aims to create a grassroots movement that will help curb rug pulls and Ethereum is right on top of its list.
@VitalikButerin rug pulled Shiba Inu $SHIB. Let’s rug Ethereum $ETH. Introducing Rug Ethereum $RETH on the Binance Smart Chain. A token that dumps ETH for BNB. The first @WARONRUGS token. #SellYourETHhttps://t.co/lZ7zckBqIG
— #WARONRUGS❌ (@WARONRUGS) May 14, 2021
The project will launch on Binance Smart Chain which has risen to be one of Ethereum’s strongest competitors. The team will use what is now a 4 percent tax applied on all transactions to borrow ETH on Venus and dump it for BNB at a low-risk ratio. Furthermore, this will keep constant pressure on ETH. As more people buy $RETH, the pressure will keep building.
The team wrote in a blog post,
Instead of adding more liquidity to our own token to create a giant ponzi like most meme coins nowadays, Venus Protocol is being used to borrow ETH at very low margin risk (to avoid risk of liquidation) to buy more BNB, contributing to create constant sell pressure on ETH pairs on BSC.
For now, this is all an experiment, but remember what else is an experiment? Shiba Inu calls itself ‘an experiment in decentralised spontaneous community building’ and it’s worth billions. If successful, one of the unwitting benefactors will be Binance coin investors.