In his recent appearance on the Lex Friedman podcast, Vitalik Buterin, the co-creator of Ethereum, revealed that he made over $4 million in profits from a $25,000 investment in Dogecoin during 2016.
But true to form, he donated it all to charity.
Dogecoin was created in December 2013 and sought to capitalize on the popularity of the then-popular Shiba Inu-inspired Doge meme with Vitalik. Description of DOGE first launched in the growing crypto asset ecosystem as “Fun Coins”.
Although he was impressed by the community that had built up around DOGE, Vitalik scoffed at the lack of an investment thesis informing his decision:
“In the beginning, people didn’t take it very seriously […] I just remembered thinking how to explain to my mom that I just invested $25,000 in Dogecoin […] Like the only interesting thing about this coin is that there is a dog logo somewhere. But definitely, it was one of the best investments I’ve made.”
Although Buterin said that DOGE “performed really well” over the following years, he recalled that he was caught by guard. speculative frenzy What happened as a result of Elon Musk charm with meme-coin.
Musk’s interest in DOGE appeared to dwindle after the 2019 community vote It revealed the SpaceX founder to be the project’s most wanted fictional CEO in 2019 – four years after Dogecoin’s founding abandoned the project.
“At the end of 2020, Elon Musk started talking about Dogecoin, and the market cap just reached $50 billion. […] It shot several times, ”said Buterin.
He explained being in lockdown in Singapore, when the price of DOGE rose 775% from $0.008 to $0.07 in a single day, thinking: “Oh my god, my DOGE is worth, like, a lot!”
“I immediately called some of my friends and told them to drop everything and scramble, and I sold half of DOGE and I got $4.3 million, donating the profits to GiveDirectly, and a few hours of doing that Afterwards the price fell back. Around $0.07 to $0.04.”
After selling half of his DOGE on a local top, Vitalik said he feels like “an amazing trader,” “of course, the price went from $0.04 back to $0.07 and then to $0.50.”
Assuming Buterin retains the remaining 50% of this DOGE, Ethereum’s co-creator is currently worth around $20 million. dog token.
Despite backing the project relatively early in its development, Buterin stressed that he did not expect Dogecoin to capture the mainstream imagination and re-emerge as a major crypto asset by capitalization:
“DOGE has become such a huge phenomenon where a lot of people who have heard of DOGE who haven’t heard of Ethereum, it is something I wasn’t even predicting.”