Vitalik Buterin Accused Boosting Scam Meme Coins Unknowingly

Crypto Rug Muncher Targets Vitalik Buterin for Allegedly Boosting Scam Tokens

Recent allegations have emerged in the crypto industry, with Crypto Rug Muncher, a well-known figure in exposing cryptocurrency scams and rug pulls, accusing Ethereum co-founder Vitalik Buterin of directly pumping the price of a scam project, while indirectly fueling a price pump in another. Crypto Rug Muncher, who has an audience of over 27,000 followers on Twitter and nearly 4,000 subscribers on Telegram, claims that Vitalik's recent actions have given legitimacy to the questionable project which price he had pumped.

The accusations were prompted by a Twitter post made by Vitalik Buterin yesterday, where he thanked meme coin projects for their charitable contributions. Specifically, Vitalik mentioned two meme coin tokens—EBULL and MOODENG—for airdropping him project tokens, each worth hundreds of thousands of dollars, which he stated would be donated to charity.

vitalik.eth

@VitalikButerin

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I appreciate all the memecoins that donate portions of their supply directly to charity. (eg. I saw ebull sent a bunch to various groups last month) Anything that gets sent to me gets donated to charity too (thanks moodeng! The 10B from today is going to anti-airborne-disease…

12:03 PM · Oct 7, 2024

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Crypto Rug Muncher's Claims Against Vitalik Buterin

Crypto Rug Muncher has been vocal about the ETHEREUM IS GOOD (EBULL) cryptocurrency project, which he has been covering since September, labeling it as a high-potential rug pull that aims to deceive crypto investors. While he stops short of accusing Vitalik of deliberately promoting fraudulent projects, Crypto Rug Muncher expressed concerns about Vitalik's approach in a series of tweets.

Crypto Rug Muncher

@CryptoRugMunch

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Vitalik may have pumped $EBULL by posting about it today, but it's still the same supply-controlled scam it’s always been. Currently, 55 fresh wallets control over 40% of the supply. They’ve managed to do charitable donations by dumping on those who bought into the project.…

3:58 PM · Oct 7, 2024

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According to Crypto Rug Muncher, Vitalik is unknowingly helping cryptocurrency scammers by acknowledging and ultimately promoting their crypto project without conducting even the most basic due diligence or investigating its inner workings. He states that Vitalik's mention of the EBULL token causes unsuspecting crypto investors to buy in, only for insiders to sell their tokens at inflated prices, resulting in losses for new buyers.

One of Crypto Rug Muncher's tweets highlighted how Vitalik's tweet not only directly raised the fraudulent EBULL coin price but also indirectly caused a surge in the price of Moodeng CTO (MOODENG), a fraudulent project that exploited the legitimacy of the genuine Moodeng (MOODENG) token. He claims that this surge allowed insiders to profit, leaving ordinary investors holding the bag. In his words, "A new scam model has been unlocked: Bundle supply, send some to Vitalik so he can dump on your community, donate it to charity, and all will be forgiven."

Crypto Rug Muncher

@CryptoRugMunch

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Vitalik is also helping the fake CTO cabal version of $MOODENG today by tweeting about it, along with $EBULL. A new scam model has been unlocked: Bundle supply, send some to Vitalik so he can dump on your community, donate it to charity, and all will be forgiven. This highlights…

5:44 PM · Oct 7, 2024

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Ethical Questions Raised by Crypto Rug Muncher's Accusations

Vitalik's tweet seemed innocent, expressing appreciation for meme coins that contribute to charitable causes. He mentioned that anything sent to him would also be donated to charity, such as the 10 billion Moodeng tokens, which were directed towards anti-airborne disease technology. However, this acknowledgment has now been called into question for potentially endorsing crypto projects that may be structured primarily to scam crypto investors.

However, the issue is not limited to public figures. Digital news outlets, crypto exchanges, blogging platforms, and many other legitimate websites are publishing sponsored, paid articles, and other advertisements that promote fraudulent tokens, often without conducting any due diligence. These actions may cause significant financial harm to crypto investors visiting these websites, by boosting the credibility of these crypto projects and drawing investors to further explore or even conduct financial transactions.

All this raises the question: is it ethical to promote a crypto project or digital token, whether through paid or unpaid means, without conducting any prior due diligence by the promoter? Should these crypto promoters be held accountable if these crypto projects are found to be fraudulent?

Crypto Rug Muncher's Concerns Over Charity-Based Token Donations on Account of Crypto Investors

Crypto Rug Muncher also highlighted a major flaw in Vitalik's approach to donating money to charity. While the intent may be noble, Crypto Rug Muncher argues that Vitalik is prioritizing his own cause of contributing to charity over the interests of innocent crypto investors who may fall victim to scam cryptocurrency projects. Vitalik's willingness to accept tokens from scam projects and acknowledge them publicly causes significant harm to investors.

These types of donations pose significant risks for investors. Cryptocurrency scam projects can use the charity angle to mask their true intentions, gaining legitimacy by appearing altruistic. By donating digital tokens to charity, these projects may create the illusion of being community-focused and trustworthy, which can deceive potential investors. Moreover, the promotion of these charity-linked digital tokens by influential figures like Vitalik can inadvertently provide a platform for scammers to exploit unsuspecting buyers. This allows scammers to attract more investors, only to execute an exit strategy by dumping their tokens after gaining enough exposure.

Crypto Rug Muncher argues that this type of charitable association can be highly misleading and exploitative, especially when funds for donations are obtained by dumping tokens on new investors. He emphasizes that, while charity may seem like a positive use of funds, it should not come at the cost of harming innocent investors who are drawn in by the perceived legitimacy of these projects.

In his tweets, Crypto Rug Muncher warned that investors should be cautious about supporting projects that gain legitimacy through endorsements from well-known figures, even if the endorsements come with good intentions. He concluded with a stern message: "Don’t support this scam."

Conclusion: The Need for Accountability in Crypto Promotions

The accusations against Vitalik Buterin highlight a critical issue in the crypto industry—the responsibility of public figures and platforms in promoting projects, directly or indirectly. While Vitalik's intentions may have been genuine in praising charitable donations, the unintended consequences have raised valid concerns. Public figures, websites, and platforms must exercise greater caution and conduct due diligence when endorsing or promoting projects, ensuring that their influence does not inadvertently lead to harm.