In his current look on the Lex Fridman podcast, Ethereum co-creator, Vitalik Buterin, revealed he profited greater than $4 million from a $25,000 investment that he made into Dogecoin throughout 2016.
However true to kind, he gave all of it away to charity.
Dogecoin was created in December 2013 and sought to capitalize on the recognition of the then-popular Shiba Inu-inspired doge meme, with Vitalik describing DOGE as among the many first “fun coins” launched into the burgeoning crypto asset ecosystem.
Though he was impressed by the neighborhood that had fashioned round DOGE, Vitalik joked in regards to the lack of investment thesis informing his resolution, stating:
“At the beginning, people didn’t take it very seriously […] I just remembered thinking to myself, how am I going to explain to my mum that I just invested $25,000 into Dogecoin […] like the only interesting thing about this coin is a logo of a dog somewhere. But of course, that was one of the best investments I have ever made.”
Though Buterin said that DOGE “did really well” over the next years, he recalled being caught off-guard by the speculative frenzy that resulted from Elon Musk’s fascination with the meme-coin.
Musk’s curiosity in DOGE appeared to stem after a 2019 neighborhood vote that exposed the SpaceX founder to be the undertaking’s most-desired hypothetical CEO in 2019 — 4 years after Dogecoin’s founder had deserted the undertaking.
“At the end of 2020, Elon Musk started talking about Dogecoin, and the market cap just shot up to $50 billion […] It shot up multiple times,” mentioned Buterin.
He recounted being in lockdown in Singapore when the value of DOGE shot up 775% from $0.008 to $0.07 over the course of a single day, considering: “Oh my god, my DOGE is worth, like, a lot!”
“I immediately called up some of my friends and told them to drop everything and scramble, and I sold half of the DOGE and I got $4.3 million, donated the profits to GiveDirectly, and a few hours after I did this the price dropped back from around $0.07 to $0.04.”
After promoting half of his DOGE on the native prime, Vitalik says he felt like “an amazing trader,” till, “of course, the price went back up from $0.04, then to $0.07, then to $0.50.”
Assuming that Buterin held on to the remaining 50% of this DOGE stash, Ethereum’s co-creator would presently be hodling practically $20 million value of the canine token.
Regardless of backing the undertaking comparatively early into its growth, Buterin emphasised he didn’t anticipate that Dogecoin would seize the mainstream creativeness and re-emerge as a number one crypto asset by capitalization:
“DOGE becoming this big phenomenon, where there’s even a lot of people that have heard of DOGE that have not heard of Ethereum, is something that even I was not predicting.”