The meme token first rose in price by 26 times in a couple of days, and then its quotes instantly fell by more than 50%. What is the secret of Shiba’s success and what does Vitalik Buterin have to do with it
Shib Coin is an ERC-20 token on the Ethereum blockchain, named after the Shiba Inu dog breed. On the official website of the project, the tokens themselves are called “Meme Coins”. The project was launched in August 2022.
The founder of Shiba, hiding under the nickname Ryoshi, chose the Ethereum blockchain for a reason. He believes that, unlike most other networks, Ethereum is truly decentralized, secure and well-established. According to the founder of Shiba, Ethereum makes it possible to create free decentralized communities.
Shiba Ideas
The project’s website calls the token itself a “Dogecoin killer,” and says that its main goal is to surpass the total capitalization of Elon Musk’s favorite coin without crossing the $0.01 price mark. The Shib whitepaper, which the authors jokingly call “woofpaper,” states that Shib is an experiment in the spontaneous construction of a decentralized community.
The creators of Shiba were inspired by the example of the WallStreetBets community, which inflated the price of shares of GameStop and a number of other companies. The creators of Shiba call their community “Shib Army”. According to their estimates, this “army” already includes more than 120 thousand people.
Shiba's main goal is to create the best decentralized ecosystem (DECO) on the planet. The first step towards this will be the creation of the decentralized exchange Shiba Swap. On the exchange it will be possible to engage in profitable farming and mining liquidity through coins of the Shib ecosystem. Also, as part of the development of the ecosystem, the Shib team will release their NFT tokens and a new Bone coin. There is already a second coin in the ecosystem, Leash. Its total supply is only 100 thousand coins, and the cost is $1.8 thousand, according to Coinmarketcap.
More than 800 million SHIB have burned since mid-autumn
Initially, Cooper hoped to burn one billion coins and in several tweets he encouraged the SHIB community to support this initiative by donating $5 each. However, his enthusiasm was not shared, and only a fifth of the billion was burned.
In total, Cooper has burned 880,983,100 SHIB tokens since October. This equals $33,741.60.
370.4 million SHIB burned per day
According to data provided by Etherscan, a total of 370.4 million Shiba Inu coins were burned by various organizations over the past 24 hours and ten hours.
Among the transactions, the largest transaction is 9,110,280 SHIB , several million coin transactions and the remaining transactions are less than a million.
As U.Today reported last week, on December 21-22, 706 million Shiba Inus were sent to address zero, giving SHIB a small boost.
Previously, Stephen Cooper tweeted that over the next 60 days, the SHIB burn rate will double as the project has just started exploring new ways to burn these meme tokens.
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What does Buterin have to do with it?
The creators of Shib claim that they were the first to abandon the practice of token ownership by the founders and developers of the project. To do this, 50% of Shib was sent to the Uniswap exchange and blocked, and the remaining 50% was sent to the wallet of Ethereum creator Vitalik Buterin. Ryoshi wrote in the white paper that “there is no greatness without vulnerability.” The creator of the altcoin emphasized that “until Vitalik betrays the project, it will live and develop.”
The meme token has gained great popularity, and its price has increased many times. In four days, the price of Shib rose almost 25 times.
As a reaction to the multiple increase in the price of the token at the end of the May holidays, Shib was listed on the OKex and Huobi exchanges. By this time, Shib's trading volume was about $500 million, and after listing it rose to $8 billion.
However, hope in Buterin at a certain point let down the creators of Shib. Of the 505 trillion Shib tokens stored in his wallet, the Ethereum creator donated 50 trillion Shib to charity in aid of the India Covid-Crypto Relief Fund. As a result, Shib's price fell more than 50% from its high.
Vitalik owns 50% of Shiba Inu's (SHIB) supply, and this worries investors.
- Vitalik Buterin received 50 percent of the total Shiba Inu supply after its launch, making him the biggest whale.
- DOGE's copy has surged more than 1,500 percent over the past week, bringing the founder's Ethereum holdings to $15 billion.
Over the past year, anonymous Shiba Inu (SHIB) developers have sent 50 percent of the token supply to Vitalik Buterin's wallet. In their opinion, this was another way to burn him. Assuming that the founder of Ethereum would not spend the tokens by sending these tokens to him, they effectively removed them from circulation. With low and limited supply, demand increases over time. Vitalik now owns 50 percent of the circulating supply, making him the largest whale of the digital asset.
Since DOGE began rallying, primarily through retail investor FOMOing, Dogecoin clones have become more popular. The weekend DOGE flopped after Elon Musk's appearance on SNL, SHIB erupted. The asset took part of the outgoing DOGE money.
In addition, at the beginning of the week, crypto exchanges KuCoin and Binance added support for the coin, maintaining its positive dynamics. A look at the last 7 days shows that the token has gained over 1,500 percent. This remarkable surge has seen the altcoin rise into the top 20 largest coins on the market. This is a remarkable achievement for a coin that was released just a year ago.
The total number of meme coins in circulation is SHIB 394,796,000,000,000. Each SHIB is worth approximately $0.000032, bringing the total market capitalization to just under $12 billion. Vitalik owns approximately 505 billion SHIB, which at the above price at the time of publication is just over $16 billion.
Vitalika's HIB: a cloud hangs over the investor's head
Although the developer intended to increase the value of the coin by giving Vitalik such a huge amount, the token is at risk of a huge landfill that could sink it. If Vitalik has not burned his wallet key, he can always access his account and sell all or part of his share.
