The hype around the Dogecoin cryptocurrency since the beginning of 2021 has led to a sharp rise in the price of a digital asset and made DOGE one of the largest coins in the industry. Vitalik Buterin managed to make money on the success of Dogecoin, and his relatively small investment brought millions of dollars. Buterin invested $ 25,000 in cryptocurrency in 2016 and has already received more than $ 4 million in profit. True, he claims that he gave everything to charity. He made such a statement during the latest release of the podcast of Lex Fridman.
Buterin bought coins because he liked the dog on the token logo
Dogecoin was created in 2013, it is, in fact, one of the oldest coins on the cryptocurrency market. The listing of the token on exchanges such as Binance and OKEx has strengthened its position by creating more stable trade flows and interest in coin accumulation. Exchange representatives note its convenience, low transaction fees and reliability. But it was not always so.
Buterin claims that he bought the coins not for any specific purpose, but because he liked the dog on the token’s logo.
Buterin stressed that he never expected that such a meaningless coin like Dogecoin would become mainstream in the crypto community and attract so many fans. He also said, “DOGE has become a popular phenomenon. It turned out that there are a lot of people who have heard about DOGE, but not about Ethereum. I didn’t expect that”. And this despite the fact that ETH has been the second largest cryptocurrency industry in terms of capitalization for several years in a row.
However, Vitalik doesn’t have the same great love for other “dog coins” that have become popular recently: he recently collapsed the Shiba Inu cryptocurrency by selling a huge amount of the asset at the market price. The money raised was also sent to charity, and in large quantities.
Potential cooperation between Ethereum and Dogecoin
Vitalik Buterin talked about a potential collaboration between Ethereum and Dogecoin to ensure the scalability of the joke coin. Buterin noted that if Dogecoin wants to somehow connect to Ethereum, then people will be able to trade DOGE thousands of times per second within a loop, and that will be amazing, besides with very low transaction fees. “Ethereum is not against Dogecoin”, the co-founder said.
Elon Musk agrees with Vitalik Buterin about the Dogecoin and Ethereum collaboration, commenting on his Twitter interview.
Dogecoin promotion by Elon Musk
Note that the path to the success of Dogecoin began with active promotion by the head of Tesla Elon Musk: he started tweeting about Dogecoin in January of this year, after which he stated that he even offered his support to DOGE developers back in 2019.
In general, over the calendar year, the asset price increased by 14.33 thousand percent. This is significantly more than the corresponding figures for Bitcoin and Ethereum.
It is important to note, however, that many investors have lost money on DOGE. Still, Musk actively promoted cryptocurrency before and during his appearance on the SNL TV show, which forced many novice traders to purchase the coin. And since then the collapse of the rate followed, some of them were forced to close positions and fix losses.
Be that as it may, Vitalik is not an investor who lost money on DOGE. Moreover, its initial investment has grown more than a hundredfold.