The second-largest cryptocurrency, Ethereum’s Co-founder Vitalik Buterin has burned 90% of his newly released Shiba Inu coins. The amount worth $6.7 billion.
First of all, for those who don’t know the term “Burn” means actually what it sounds. In crypto, Burning coins meaning sending coins to an address named ” Eater Address” After burned, coins or tokens cannot be recovered.
The burned amount on 16th May 2021 is about 410 trillion SHIB tokens worth $6.7 billion which surprisingly equates to almost 50% of SHIB’s current circulating supply.
Vitalik noted in a transaction,
“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 large-scale loss of life) but with a more long-term orientation. Covid is a big problem now, but it’s important to think about the longer-term future too!”
He’s been doing some great things for the world. Recently, he donated 50 Trillion also SHIB tokens to an India COVID-19 relief fund which has been set up by Sandeep Nailwal (Polygon Founder).
Talking about SHIB however, it has seen a massive price increase in the last months. According to Coinmarketcap, SHIB’s approx. return on investment is at 1039076.42%. Imagine if you had put 10 bucks when it was released.
SHIB is currently trading around $0.00001686. Anyways, what would happen to SHIB price in the future? In general, if a coin burn affected the circulating supply of a coin means it should result in price gaining.
The SHIB tokens Vitalik burned are from his personal holdings that he had been given by the creators of Shiba Inu. In my point of view, this burn cannot be considered as burning from the circulating supply, which means the price of SHIB should go according to fundamental and technical analysis and not will be affected by this burning incidence.