Ethereum co-founder and crypto billionaire Vitalik Buterin has destroyed 410 trillion Shiba Inu (SHIB) coins worth USD $7 billion a few hours ago. The proof of this can be found on the Etherscan website as seen below.
Shiba Inu (SHIB) coin creators had locked 50% of the total supply into Uniswap for sale contract and the keys were thrown away. The remaining 50% was given to Vitalik with the hope that Vitalik will never rug SHIBA and it will survive.
However, last week on 12th May, Vitalik donated 50 trillion SHIB tokens worth $1.2 billion to the India Covid Relief Fund set up by Indian tech entrepreneur Sandeep Nailwal.
Vitalik’s move significantly impacted the prices of the tokens. More coins in supply mean a price crash and that’s exactly what happened. Shiba Inu coin prices crashed down to 30% on the same day and the entire Shib community panicked.
Why Vitalik burned 40% Shiba Inu (SHIB) coins
Alongside the transaction, Vitalik left a note for the SHIB community and other in this space:
“I’ve decided to burn 90% of the remaining Shiba tokens in my wallet. The remaining 10% will be sent to a (not yet decided) charity with similar values to cryptorelief (preventing the large-scale loss of life) but with more long-term orientation. COVID is a big problem now, but it’s important to think about the longer-term future too!” he wrote. “Simply holding the remaining coins in the 0xab58 wallet forever was never an option; for security reasons alone they would have to be moved to a better wallet eventually, and any transaction I make would get interpreted as an action. So… may as well do the useful thing immediately. “I’ve actually been impressed by how the dog token communities have treated the recent donation! Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better. I support all who are earnestly doing that. “But for anyone making coins (or daos, or whatever else) in the future, PLEASE DO NOT GIVE ME COINS OR POWER IN YOUR PROJECT WITHOUT MY CONSENT! I don’t want to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first).”
Technically, now only 60% of SHIB coins left in circulation which means more demand and higher value per coin. However, it is also important to note that there are still 600 trillion coins left and that is a lot to actually make any significant impact on its market price in the near future.
So, even if you are jumping to buy SHIB, make sure DYOR (Do Your Own Research) before any investment.