The COVID-19 aid crypto donation from the Ethereum co-founder, Vitalik Buterin, amounting to $1 billion, has yet to be distributed in India after two months. Thus, the value of the digital coin has already deteriorated due to price fluctuations.
It is worth noting that cryptocurrencies are volatile in nature. As such, some investors of the digital asset monitor its market cycle to predict bullish growth, which leads to profit.
COVID-19 Aid Crypto Donation Worth $1 Billion
Despite the price fluctuations of cryptos, the Ethereum co-founder went on to donate 50 trillion Shiba Inu coins to the India COVID relief fund, which Bloomberg noted accounts for 5% of the overall circulation of the memecoin.
Crypto Donation Distribution Delayed
As of writing, only about $20 million out of the total $1 billion initial crypto donation has been distributed. It is all due to a couple of hurdles, such as the illiquid asset conversion, the government regulations, and the actual distribution.
One of the reasons why the distribution has been delayed is mainly attributed to the local regulations of India called the Foreign Contribution Regulation Act. Following the government rules, the donation had to be converted from token to United States dollars before it becomes Indian rupees.
Nailwal further revealed that the conversion process is still at the 80% mark.
Crypto Losing Value
Since the donation has been made two months ago, the Shiba Inu tokens have already figured in a 50% price crash, leading to the current value amounting to about $400 million, as estimated by Sandeep Nailwal, founder of the Indian COVID fund.
As per Express UK, the memecoin, which is touted to be the Doge rival, is still predicted to lose more of its value in the coming weeks.
India COVID Crypto Relief Fund
The disbursement of the relief fund has only tallied at $20 million as of now. However, Nailwal noted that another $20 million is gearing for distribution. The founder of the COVID fund further said that the money needs to actually be given to the grassroots level.
On top of that, Nailwal even bared that he hired a prominent audit firm to maintain the transparency of the fund distribution.
In hindsight, the COVID fund launched in April as India grappled with the novel coronavirus with daily record-high deaths.
Moreover, the founder assured that the organization is getting ready for another surge of cases.
That said, the crypto donations have already been allocated to food aid in different locations in India, as well as a total of 10 intensive care unit beds for the severe cases in the outskirts of the country.
Elsewhere, Amazon denied rumors saying that the e-commerce titan is planning to use crypto as a payment method in the platform.
This article is owned by Tech Times
Written by Teejay Boris