- Vitalik Buterin’s $DHN selloff slashed its value by 50%, raising concerns over Dohrnii’s credibility and future market performance.
- Analysts flag $DHN’s trading activity as manipulated, citing artificial price spikes, sharp drops, and a disproportionate valuation.
- Dohrnii’s learn-to-earn model faces skepticism, with critics warning that speculative interest may not sustain long-term demand.
According to Spot on Chain, Vitalik Buterin recently sold 5,000 $DHN for 65.19 $ETH, valued at $124,000, leading to a drastic 50% price decline. The Ethereum co-founder originally received 10,000 $DHN from Dohrnii Labs’ Treasury on January 29. He still holds 5,000 $DHN, worth approximately $114,600. This massive selloff has sparked widespread discussions about the project’s credibility and future market movements.
Market Manipulation Concerns Emerge
Besides the price plunge, market analysts have flagged concerns over potential manipulation in $DHN’s trading activity. Jerry Banfield, a seasoned crypto analyst, scrutinized Dohrnii, describing its market trends as artificial.
The price history of the token, he said, exhibits sudden increases and rapid declines, suggesting potential coordinated trading tactics. The project’s fully diluted valuation of $18 billion, he added, is out of proportion to its success in the market.
Additionally, Banfield criticized Dohrnii’s tokenomics, highlighting that 95% of its tokens remain locked. He argued that this situation creates a dangerous market environment prone to massive dumps when unlocks occur. This aligns with historical trends where low-circulating supply tokens experience extreme volatility due to sudden liquidity influxes.
Dohrnii’s Learn-to-Earn Model Under Scrutiny
Moreover, Dohrnii positions itself as an educational platform aiming to democratize crypto knowledge through a gamified experience. It rewards users with $DHN tokens for learning about blockchain, trading, and DeFi. However, critics argue that such models often rely on speculative interest rather than fundamental utility. Consequently, if user engagement declines, token demand may diminish, leading to further devaluation.
The project markets itself as a movement for financial empowerment. However, its ability to sustain long-term user participation remains questionable. Without consistent growth and real-world adoption, the token’s value could continue to face instability.
