The famous co-founder of Ethereum (ETH) Vitalik Buterin indicated via a tweet that the association Crypto Relief will donate 100 million dollars to him in the form of USDC in order to invest in the research and development of solutions against the Covid-19 epidemic. Vitalik Buterin had made an initial donation of over $1.2 billion in the form of SHIB and ETH.
Vitalik Buterin will recover part of his donations made to Crypto Relief
Vitalik Buterin, one of the co-founders of the Ethereum (ETH) blockchain , said the Crypto Relief Foundation will donate $100 million to him in the form of USDC.
In May 2021, Vitalik Buterin donated $1.2 billion in SHIB and ETH tokens to the Crypto Relief Foundation, led by Sandeep Nailwal, who is none other than one of the co-founders of the sidechain Polygon (MATIC).
The Crypto Relief association aims to support the research and development of solutions to the Covid-19 epidemic in India , and also participates in the purchase of medical equipment. In August 2021, it had signed a partnership with UNICEF India to buy 160 million doses of the vaccine to redistribute them to Indian citizens.
At the time of writing, more than 98% of the association’s funds come from various donations from Vitalik Buterin.
Vitalik Buterin’s initial donation consisted of more than 50 billion SHIB tokens, which strongly shook the meme-coin market, causing its value to decline by 33% .
A new investment in scientific research
Sandeep Nailwal would have decided to donate part of the donations to Vitalik Buterin in order to be able to accelerate research relating to Covid-19.
Indeed, Sandeep being an Indian citizen, the funds passing through the hands of the association are subject to regular and thorough checks by the authorities , which would seem to be a brake on its development.
Thus, the 100 million dollars donated to Vitalik Buterin will still be dedicated to research for the development of vaccines against Covid-19, air filtration solutions and also tests. Not being of Indian nationality, he will be able to invest in different projects in a much simpler way .
The latter has also decided to co-found an association specially dedicated to this project, already called “Balvi” , which will be responsible for redistributing the funds.
Vitalik Buterin wanted to make transactions transparent, so it is possible to view them in real time directly on Etherscan .
Although it would seem that more details are to come, Vitalik Buterin still announced that his new organization could have an impact beyond India.
The disadvantages of cryptocurrency donations
Although cryptocurrency donations are an attractive solution for those who wish to remain anonymous or simply for those who do not have access to a bank account, they also have several flaws .
Proof of this is with the Crypto Relief association, which will only have $302 million left in the form of SHIB tokens after having paid the 100 million USDC to Vitalik Buterin.
Why such a decrease compared to the initial billion? Quite simply because of the volatility of the cryptocurrency market. In this case, the value of SHIB has been steadily decreasing since the end of October 2021, and therefore the value of Vitalik Buterin’s donation as well.
India’s regulatory authorities also require the association to convert its donations into rupees , the Indian currency, which furthe
