Ethereum co-founder Vitalik Buterin during a recent podcast appearance with artificial intelligence researcher Lex Fridman. He revealed that he made more than $4 million from an investment in Dogecoin. All this, during the year 2016. And of course, Elon Musk agrees with some of his comments.
In fact, although he was impressed with the community that has formed around DOGE. Vitalik Buterin joked about the lack of investment motives behind his decision, stating:
“At first people didn’t take it very seriously. I remember thinking, how am I going to explain to my mother that I just invested $25,000 in Dogecoin? But it was one of the best investments I ever made”.
Vitalik Buterin’s $ 25,000 investment in Dogecoin has generated a profit of $ 4.3 million
While Vitalik Buterin has said on the podcast, that DOGE performed very well in the years that followed. He recalls being caught off guard by the speculative frenzy sparked by Elon Musk’s fascination.
“At the end of 2020, Elon Musk started talking about Dogecoin, and the market capitalization just went up $50 billion. It has gone up several times.”
“Immediately, I called some of my friends and told them to drop everything and hurry up. I sold half of my stakes in DOGE and raised $4.3 million.”
Likewise, Vitalik Buterin emphasized that he did not expect Dogecoin to capture the imagination of the general public. And it would reappear as a leading cryptocurrency, in terms of capitalization.
“DOGE is a huge phenomenon. There are even many people who have heard of DOGE and who have not heard of Ethereum. It is something that even I did not anticipate.”
But true to form, he donated it all to charity
“After selling half of my holdings in DOGE, I donated the proceeds to GiveDirectly. And a few hours after doing this the price fell again from about $0.07 to $0.04.”
Indeed, after selling half of his DOGE, Vitalik says he felt like “an incredible trader.” Until, “of course, the price went back up from $0.04, then $0.07, then $0.50.”