It’s been two months since Ethereum cofounder Vitalik Buterin shocked the entire crypto community with his $ 1 billion Shibu Inu (SHIB) donation to COVID-Crypto Fund in India. However, according to the fund’s creator, the collection proved problematic.
Only $ 20 million was disbursed
But to date, according to Sandeep Nailwal, co-founder of Polygon and creator of the Fund that received the donation, only an infinitesimal part of the tokens have been distributed.
In fact, the New Delhi-based entrepreneur revealed that just $ 20 million of SHIB tokens were paid for with another $ 20 million in the pipeline.
Sandeep Nailwal: It’s not easy
The fund’s creator told Bloomberg that cashing in on Buterin’s $ 1 billion donation is quite complicated due to the cumbersome processes involved such as liquidity concerns, compliance with government policies, and proper distribution of funds.
“Between cashing in on an illiquid asset, complying with government regulations, and getting the money to the right places, it’s not easy,” said Sandeep Nailwal.
According to him, compliance with India’s Foreign Contribution Regulation Act requires that tokens be converted first before rupees. He noted that 80% of the tokens have already been converted.
With $ 20 million paid so far, the fund’s creator has said he wants to ensure the money hits the base level. The funds are provided to food distributors across the country, as well as to an organization that sets up mini-intensive care units for COVID-19 patients in rural areas. Nailwal plans to hire a top auditing firm to ensure transparency, the report added.
Buterin’s $ 1 billion SHIB donation is now worth $ 400 million
As reported in May, Vitalik Buterin, who was donated half of Shiba Inu’s total supply, surprised everyone when he burned 90% of his nearly $ 7 billion worth of SHIB holdings along with other dog meme tokens. He donated the remaining 10% to charities and Nailwal’s COVID-Crypto Fund received SHIB 50 trillion ($ 1 billion at the time) with GiveWell and Charter Cities Institute also among the beneficiaries.
In the aftermath of the event that shook the market, SHIB and the other tokens collapsed heavily, losing almost half of their value at the time. The drop in Shiba Inu’s price also affected the SHIB’s 50 trillion donation, and Nailwal estimates the new value to be around $ 400 million.
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