The fund manager in charge of receiving the SHIB donations from Vitalik Buterin for COVID-19 relief in India has revealed bottlenecks to the process.
Although Ethereum (ETH) co-founder Vitalik Buterin donated $1 billion in SHIB tokens to a COVID-19 relief fund in India, recipients and distributors have received only about $20 million.
The founder of the receiving fund, Sandeep Nailwal, recently spoke to reporters about the problem. Nailwal, who is also the Polygon (former Matic) co-founder, said that the problem is a genuine carefulness to ensure that the funds reach the grassroots. Both Nailwal and Buterin want to ensure that as quickly as possible, the funds reach the intended recipients, especially those who need them the most. Nailwal also told reporters that he will employ an auditor to oversee the disbursement.
There also is the problem with official bureaucracy and paperwork. To follow due process, the entire donation and disbursement must be according to India’s Foreign Contribution Regulation Act, and comply with its requirements. Between converting the funds from crypto to dollars and eventually rupees, Nailwal must ensure compliance with the Act. At the moment, this part of the procedure is 80% complete.
The donations are already traveling to several parts of the country. Several distributors have begun receiving these funds, including an outfit focused on mini-intensive care for COVID-19 patients in the rural parts of the country.
Nailwal further told reporters that the COVID-19 pandemic is still of some concern to him. He expressed his anxiety about the third wave of the pandemic currently estimated to have a 400,000 death toll. This is a modest figure compared to others that say the death toll may be up to 4 million.
Buterin and His SHIB Donation
Around mid-May, Buterin liquidated a large number of dog-themed coins in his possession. The co-founder received large amounts of these memecoins as gifts from their developers, and decided to donate them to charity. The tokens include Shiba Inu (SHIB), DogElon Mars (ELON), and Akita Inu (AKITA)
Upon announcing the donations, all three tokens considerably lost value, with SHIB and ELON plunging by more than 40%. Many traders who had positions in these coins decided to protect their profits from the sell-off that happened shortly after.
However, the price crash triggered by the donations eventually affected it negatively. Since the sell-off, Shiba Inu coins have crashed by over 50%, essentially losing half of their value. According to Nailwal, the eventual value of the funds might not surpass $400 million.
The Shiba Inu token has had massive success just like other dog-themed tokens, following successes Dogecoin recorded. The ERC20 token is currently trading at $0.000006272 after falling 1.15% in 24 hours and 1.73% in 7 days. Also, according to a recent report, investment platform eToro is currently considering listing the token. In a recent tweet, the platform asked the “Shib fam” to “hang tight” as it is “on the case to officially list [SHIB] on eToro.”
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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