Only $20 million of the $1 billion in Shiba Inu coins that Ethereum co-founder Vitalik Buterin donated to a Covid-19 relief fund in India has so far been cashed out and distributed to aid recipients.
Sandeep Nailwal, the founder of India’s Crypto Covid Relief Fund, explained in an interview why the process has not been frictionless as cryptocurrency users would have expected.
In May, Buterin liquidated several of his Shiba Inu tokens and donated the proceeds to many charitable organizations, including Gitcoin, Give Well, and India Crypto Covid Relief Fund, India faced severe cases of Covid-19 infections. Buterin’s liquidations caused a price crash and panic among traders who rushed to lock their profits amid the price plunge during that month, which saw the value of Shiba Inu coins drop by over 40%.
It is now about two months down the line as Sandeep Nailwal shared some difficulties concerning cashing out Buterin’s contribution. So far, just $20 million has been paid out, with another $20 million expected to be cashed out in the near future.
Nailwal admitted that some of the delays are caused by his cautious approach and the desire to ensure that the funds reach grassroots organizations transparently to places where they are most needed. He, therefore, said that he plans to hire a reputable auditor to assist in overseeing the process as it continues.
Apart from that, Nailwal stated that Buterin’s sell-off caused a price crash that saw the initial $1 billion in value that 50 trillion Shiba Inu coins represented during that time of their liquidation soon lost their value by about 50%. Nailwal has estimated the final total value of Buterin’s contribution to be about $400 million.
Besides that, Nailwal revealed that the disbursement of the funds is still facing difficulties because of the requirements to comply with India’s Foreign Contribution Regulation Act amid the conversion of the crypto coins into US dollars and then Indian rupees.
Covid-19 Soared Crypto Trading
During the Covid-19 pandemic, the main focus for businesses has mainly been operational resilience and crisis management. The pandemic destabilized global economies and changed the way the globe operates. While attitudes towards cash changed, the pandemic increased the appetite for crypto in India.
Some of India’s best crypto minds have come together to do their best based on their ability as the country struggles to contain the pandemic. Spearheading the cryptocurrency drive to assist patients affected by the coronavirus is India’s Crypto Covid Relief Fund. The donations they obtain are being used to provide essentials and healthcare to people fighting the virus.
That demonstrates why India embracing cryptocurrency is a good thing as crypto is instant, and the funds can be raised globally. Although the crypto bags heading for COVID-19 relief is being applauded for the important role it plays, there are still lots of challenges associated with the venture, as pointed out by Nailwal.