Buterin Transfers ETH To Railgun Monthly: Boost For Privacy Or Red Flag?

Key Points:

• Vitalik Buterin endorsed Railgun via substantial Ethereum transfers.
• Buterin praised Railgun’s privacy features for DeFi transactions.

Vitalik Buterin transfers ETH to Railgun monthly, which has highlighted the privacy benefits of the platform, yet the move divided the crypto community.

Ethereum co-founder Vitalik Buterin has once again made a significant endorsement for the blockchain privacy protocol, Railgun.

His support could be noticed when he transferred a series of Ethereum into the Railgun project in the past seven months, which just concluded with a substantial 80 ETH (almost $300,000) transfer.

Vitalik Buterin transfers ETH to Railgun Every Month

The transfers, beginning with the initial 0.1 ETH and increasing tenfold each month, show the commitment of Buterin toward the project.

As evidenced by data from the on-chain platform, Arkham Intelligence, a transfer of 100 ETH, approximately $325,000, was made from his vitalik.eth address to Railgun on April 15, 2024.

In addition, he has eulogized the privacy benefits that Railgun offers using its Zero-Knowledge technology, allowing users to make private smart contracts and DeFi transactions.

Readmore: SEC Leans Toward Spot Ethereum ETF Approval: Report

Buterin’s Influence on Railgun’s Market Value

Railgun, built on the idea of enhancing privacy across blockchains, has been on Buterin’s watchlist for quite some time. Earlier, on March 5, 2024, the cryptocurrency community noticed Vitalik’s interaction with the Railgun project as he transferred his assets to the Base blockchain.

The endorsement by Buterin had a real effect on the Railgun project as the RAIL token surged more than 180%, from an initial price of $0.561 to its current trading price of $1.26.

According to some sources, the move by Vitalik Buterin, however, divides the crypto community into pro-Railgun use and those skeptical of such support since Railgun is a coin-mixing tool that the crypto hacker groups often use.