(Bloomberg) – When Vitalik Buterin, one of the creators of the cryptocurrency Ethereum, donated more than 50 trillion Shiba Inu coins ($ 1 billion) to a relief fund for Covid-ravaged India, it generated more concern than relief in the crypto-nation cautious.
The contribution, more than 5% of the total Shiba Inu coins in circulation, not only caused prices to plummet by 50%, but also raised questions about how to use the coin in a country that strictly monitors foreign inflows and Where the central bank has expressed “big concerns” about crypto in general, forget about a memecoin.
Sandeep Nailwal, a New Delhi cryptocurrency entrepreneur who created the fund three weeks ago, says that he has found a solution. He announced last month that his India Covid Crypto Relief Fund has already identified an entity to convert donations into rupees and a recipient of aid that is compliant with India’s Foreign Contribution Regulation Act. He now promises to “act responsibly” to protect the retail community. The fund intends to liquidate only gradually to protect prices.