A wallet identified with Vitalik Buterin tapped to the USD Coin (USDC) stablecoin dip with a purchase approximated over $700000. Scrutiny of the wallet’s transaction reveals that 500 ether were utilized to mint RAI stablecoin.
Wallet Carrying Similar Identity as Ethereum Co-founder Purchases USDC Dip
The proceeds would enable the wallet with a similar identity to the Ethereum co-founder Vitalik Buterin to acquire USDC during the weekend dip to 89 cents. The transaction portrays a calculated move to tap into the likely profit when the USDC would shake off the bearish steam and surge towards the $1 peg.
A detailed transaction analysis reveals the vitalik-eth wallet’s creation date as 2016. By Tuesday, March 14, the wallet ether holdings exceeded 5360. Although Ethereum Names Service (ENS) domain identifies a specific crypto wallet, a party holding them may differ from the name even when such an individual is popular.
Did Buterin Spend Ether to Mint RAI and Later USD Coin?
PeckShield analysis on Sunday, March 12, illustrated the wallet executed 500 $ETH within the Reflexer. The amount would then facilitate minting of 150000$RAI. The blockchain analytics firm indicated the wallet would swap 132500 $RAI to acquire 378500 $USDC. PeckShield further traced the remaining 17500 $RAI as involved in a swap for 50000 $DAI three hours later.
The involvement of the wallet in purchasing the USDC dip over the weekend portrays previous Buterin pronouncements. In particular, Buterin demonstrated admiration of the distinct mechanism deployed by RAI stablecoin. Unlike most stablecoins, RAI stablecoin issued by Reflexer Finance relies upon ether backing, not fiat currency.
Recovering from Weekend USDC Dip
A quick market outlook reveals that RAI is exchanging hands at $2.83. USDC slid from its $1 peg following the news of Silicon Valley Bank (SVB) collapsing on Friday, March 10. The downfall would trigger a marketwide dip.
The Massachusetts-based Circle was no exception to the decline. The company would confess $3.3 billion cash reserves locked within the Silicon Valley Bank. Circle admitted that it could not redeem USDC through the Signature-owned Signet platform.
Circle’s USDC Secures New Settlement Partner and Restores $1 Peg
The Boston-headquartered issuer of USDC stablecoin would later announce securing Cross River as its partner on Sunday to facilitate automated settlement. The new partner enabled Circle to sustain operations on Monday.
The announcement would halt the downtrend and instead trigger the surge that restored the $1 peg on March 13. Regaining the peg in a 10% surge enabled the buyers of USDC to profit within 48%. The vitalik-eth wallet would be among the beneficiaries, with its 378500 $USDC fetching $37850 worth of gain within 48 hours.
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