Ethereum co-founder Vitalik Buterin has once again disrupted the crypto markets, this time with a major sell-off of Dohrnii ($DHN) tokens. Buterin offloaded 5,000 $DHN for 65.189 ETH, worth approximately $124,275 at the time of the transaction. The sudden liquidation of these tokens led to a dramatic 45.76% price crash, plummeting $DHN from around $39.78 to just $21.58 within hours.
According to Spot On Chain, Buterin initially received 10,000 $DHN tokens for free from the Dohrnii Labs Treasury on January 29. Until today, he had not made any moves regarding the assets. With this latest sale, Buterin still holds 5,000 $DHN, currently valued at around $114,600, based on the post-crash price. Dohrnii ($DHN) was trading steadily before the sale, maintaining a price close to $40. However, the token’s stability was short-lived, as Buterin’s exit strategy sent shockwaves through the market, triggering panic among investors. The token’s sharp price decline has raised concerns over its liquidity and long-term viability.
Market Reaction & Dohrnii Labs’ Silence
The sell-off immediately fueled widespread panic, with traders rushing to exit their positions in fear of further declines. The price drop was sharp and sudden, suggesting that liquidity in the $DHN market might be relatively low. Many investors voiced concerns on social media, questioning the impact of prominent figures receiving free tokens and later dumping them, which often leads to extreme volatility and market instability. The incident has also reignited the ongoing debate about the ethical implications of airdropping large amounts of tokens to high-profile figures. Some critics argue that projects use these tactics to generate hype and credibility, but they often backfire when recipients decide to cash out.
As of now, Dohrnii Labs has not issued an official statement regarding Buterin’s sale or the token’s massive price drop. The team’s silence has only added to investor uncertainty, with many questioning whether further sell-offs from Buterin or other whales could be on the horizon. Historically, Buterin has been known to liquidate airdropped tokens, sometimes using the proceeds for charitable donations or ecosystem development. However, no such statement has been made regarding this particular transaction, leaving room for speculation on whether more $DHN tokens will be sold in the near future.
This is not the first time Buterin’s actions have caused a market-wide stir. In the past, he has liquidated unsolicited airdrops from various projects, often leading to similar price crashes. Given his significant influence in the crypto space, his token sales are closely watched by traders and analysts. With half of his original $DHN allocation still in his possession, investors are left wondering if another major dump could be on the way. Should Buterin decide to sell the remaining 5,000 $DHN, it could further exacerbate the token’s downward spiral.
