According to on-chain records Ethereum co-founder Vitalik Buterin, whose price should normally be fixed from altcoin RAI He closed his short position after gaining $92,000.
Ethereum Founder Vitalik Buterin Makes $92,000 Profit From Altcoin Short Trading
Buterin traded in May and June by borrowing 400,000 RAI and selling it for $1.2 million in DAI, a USD-pegged stablecoin. This transaction placed a valid short position on the RAI against the US dollar.
Buterin recently sold DAI and Ethereum for $1.13 million and received RAI tokens in return. According to the on-chain records in Buterin’s Ethereum wallet, the ETH founder earned $92,000 from this transaction.
Developed by Reflexer Labs, RAI is an experimental “stablecoin” that is not tied to any tokens or fiat currencies but backed by ETH. Those who want to mint RAI need to lock their ETH as collateral and pay a 2% fee.
RAI uses an algorithmic approach to stay stable. This design has an impact on supply and demand for the token, helping to reduce its volatility without being tied to a particular asset.
Due to its design, the RAI cannot stick to the US dollar and fluctuates over time. Over the past year, its price has dropped from $3.07 to $2.79. However, it remained much less volatile than most free-floating cryptocurrencies, including ETH, which is used as collateral.
Reflexer Labs co-founder Ameen Soleimani, who is now the co-founder and CEO of SpankChain, cited Buterin’s short trade to support his claim that RAI’s current design is flawed.
*Not investment advice.
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