The meteoric rise of the Shiba Inu (SHIB) token in the world of cryptocurrencies has been a subject of intrigue and speculation. However, a recent post by Shibburn aims to shed light on a critical aspect of this phenomenon: the massive SHIB burn orchestrated by Ethereum co-founder Vitalik Buterin in 2021.
According to Shibburn, the surge in SHIB's value was primarily driven by demand, rather than Buterin's token burn. This revelation has sparked discussions in the crypto community about the true factors influencing SHIB's price.
Vitalik Buterin's Potential Impact
In early 2021, the enigmatic founder of Shiba Inu coins, Ryoshi, sent half of the one-quadrillion SHIB supply to Vitalik Buterin's wallet. At that time, this staggering amount of meme coins was valued at $6.7 billion after a significant price surge in May 2021. Shibburn points out that Buterin did not immediately burn the SHIB tokens he received when the price was surging. Instead, he waited for several months before sending 90% of his SHIB holdings to a dead-end blockchain address.
The Timing of the Burn
Shibburn clarifies that the substantial price increase of SHIB, from $0.0000076 to $0.00003469 on May 11, was primarily due to surging demand as more investors discovered the ambitious new meme coin and began buying it. Buterin executed the significant SHIB burn after the price had already surged. Before the price increase, the tokens were valued at $1.7 billion. Consequently, Shibburn suggests that if Buterin had sold his holdings a few weeks earlier, he could have potentially propelled SHIB to much greater heights than it occupies today, possibly even achieving a growth of 46 million%.
Buterin's Motive for the Burn
Vitalik Buterin's decision to burn 90% of his SHIB holdings was motivated by a desire not to hold too much power within the crypto ecosystem. He also transferred the remaining 10% to the "cryptorelief" fund created by Polygon founder Sandeep Nailwa in India to support pandemic relief efforts.
Current SHIB Burns
The post also provides insight into recent SHIB burns, which appear to be on the decline. Over the last 24 hours, the Shiba Inu community burned a relatively modest amount of SHIB tokens, marking a nearly 50% drop compared to the previous day. This trend is in contrast to the significant burn rate observed after the relaunch of the Shibarium Layer 2 blockchain, where each transaction contributes to sending SHIB coins to dead wallets.
The Future of SHIB Burns
As the Shibarium blockchain gains more utility and adoption, the community anticipates an increase in SHIB tokens locked out of circulation forever. This mechanism holds the potential to impact the token's supply and, consequently, its price.
In conclusion, the dynamics of SHIB's price surge and the role of Vitalik Buterin's token burn continue to be subjects of interest and debate within the crypto community. While the SHIB phenomenon has its share of mysteries, Shibburn's insights provide valuable clarity on this intriguing chapter in the world of digital assets.
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