Top Reasons Behind Today’s Crypto Market Crash

The crypto market is down today, with a crypto crash occurring that has seen the worth of digital money fall for the time being. Most of the major cryptocurrencies were seen red with plunge over double digits, while not many were seen rising. What is the reason for this major Crypto Market crash?

Here are 2 reasons that hit the crypto space today.

Vitalik Buterin Donates $1 BN Worth of Meme Coins to India COVID Relief Fund

On may 12th, Ethereum Founder Vitalik dumped all his dog tokens. The youngest crypto billionaire across the globe Vitalik Buterin yesterday tweeted that he donated 50 trillion Shiba Inu (SHIB) tokens worth $1.14 billion to India’s Crypto COVID Relief Fund organised a month ago by Polygon Founder Sandeep Nailwal. 

Buterin donations included regifting tokens that were transferred to his public wallet by founders of the Shiba Inu coin, OURSHIB (OSHIB), mwDOGE (mwDOGE), Akita Inu (AKITA), and Dogelon (ELON). 

In recent days, creators of memecoins were sending huge amounts of their tokens to Vitalik. Which included trillions of SHIB tokens worth more than $8 billion.

In response to the SHIB donation and highlighting the concerns, Sandeep Nailwal, Co-Founder of Polygon (MATIC) thanked Buterin in his recent tweet 

Thanks @VitalikButerin

One thing we have learnt from Ethereum and @VitalikButerin is importance of community

We will not do anything which hurts any community specially the retail community involved with $SHIB

We will act responsibly!

Plz dont worry $SHIB holders. https://t.co/M4GxTR0JAn

— Sandeep – Polygon(prev Matic Network) (@sandeepnailwal) May 12, 2021

Following the exchanges that raised liquidity concerns, the costs of the memecoins plunged, with SHIB dropping more than 35%, Dogelon dropping 65%, and Akita Inu dropping more than 50% in 24 hours. 

Must Read: Top Reasons Why Cardano(ADA) Price Might Surge Massively

Tesla No Longer Accept Bitcoin Payments

Elon Musk has announced in his recent tweet that Tesla will now stop accepting Bitcoin payments, referring to  the impact to the environment of mining the currency.

Musk referred to natural worries on Thursday and said 

“ Tesla is concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

— Elon Musk (@elonmusk) May 12, 2021

However, the company would not be selling the BTC it is holding. Musk tweeted, however, that Tesla will look for other cryptocurrencies to supplant BTC as a method of payment.

Final Thoughts 

The entire crypto market has tumbled on these news. Bitcoin is down 13.4%, exchanging beneath $50,000. Ethereum hasn’t fared much better, dropping 13.7%. Dogecoin, in the interim, is down 18.3%, exchanging at $0.40 at press time. Defi tokens like Solana, Chainlink, and Polkadot have likewise dove into the red.