Shiba Inu’s Phenomenal Rise: ‘High Demand’ Propels SHIB’s 46,000,000% Increase

Shiba Inu has made significant strides since its inception. While Dogecoin gained prominence in the meme-centric crypto market, Shiba Inu successfully established its unique identity. The developers behind Shiba Inu are continuously advancing other initiatives like Shib: The Metaverse, ShibaSwap, and Shibarium to enhance the ecosystem.

Concurrently, a multitude of projects and organizations have entered collaborations with Shiba Inu. Recently, an official statement from Shibburn’s verified handle noted that the “high demand” has favorably influenced the asset’s value.

Just to clarify something on Vitalik Buterin's burn. He did not spend $1.7B in $SHIB to burn on May 2021 for it to have any effect on price then. That was given to him when the token was deployed. Transferring 90% of what was given to him from one wallet to another (burn address)… pic.twitter.com/QCpRAnlIwz
— Shibburn (@shibburn) September 6, 2023

The Vitalik Interpolation

Shiba Inu tokens have been undergoing regular token burns to reduce their circulating supply, aiming to create a deflationary impact on the token’s price. To provide some context, in May 2021, Vitalik Buterin, one of the co-founders of Ethereum, executed a significant burn of SHIB tokens valued at over $6.7 billion. Let’s take a moment to delve into the background for better comprehension.

The anonymous creators of Shiba Inu outlined in their “woofpaper” that they intended to send 50% of the total SHIB supply to Vitalik Buterin’s wallet to effectively take it out of circulation. They believed that Buterin would hold onto these SHIB tokens, and they expected this action would positively impact the token’s value. To illustrate their commitment, the team even used the same burning scale to weigh the tokens they sent to Buterin.

Initially, Buterin retained the SHIB tokens sent to him for a short period. However, he gradually began using them by gifting and donating SHIB tokens to various charitable causes worldwide.

An example of his generosity was when he donated a substantial 50 trillion SHIB tokens (equivalent to about $1.2 billion at that time) to India’s COVID Relief Fund. Shortly after, the Ethereum co-founder took a remarkable step by burning approximately 90% of his remaining SHIB holdings. He sent a staggering 410 trillion SHIB tokens (valued at approximately $6.7 billion at the time) to an inactive blockchain address, effectively eliminating them from circulation once and for all.

Shiba Inu’s Monumental Rise

According to Shibburn’s account, it was clarified that Buterin’s actions in May 2021, when he received the tokens, were not driven by the intention to influence the token’s price. The subsequent transfer of 90% of the received tokens to another wallet, specifically a burn address, several months later, did not result in any significant price increase, as the post pointed out.

https://twitter.com/shibburn/status/1699516364849811955?s=20

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

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