The Shiba Inu coin burning exercise is expected to reduce the supply of the coin, which may help its price go up.
This Christmas, 239 million Shiba Inu (SHIB) tokens, worth approximately $9,000 were burned at a party organised by Steven Cooper, the CEO of Bigger Entertainment, the world’s first crypto-based record label. The SHIB burn was streamed live to the Shiba Army, according to a report in investing.com.
Cooper had announced on December 22 that they have pooled together about 176 million SHIBs and will be burning them at their Christmas party.
“We're set to burn 176 Mil #shib & growing at our burn party Dec. 26th. We're burning live. Lets give one final push #shibarmy! Buy a burn ticket on our website for $5. 100% burned. This saves gas fees instead of everyone doing separate burns,” Copper tweeted that day.
A crypto coin-burning exercise refers to the removal of freely floating coins that are in circulation in the market. What is essentially done in this exercise is that the said number of coins are purposefully sent to an unusable or inactive crypto wallet address so that they may never come into public circulation ever again.
When Shiba Inu was created it had one quadrillion coins in total circulating supply. However, about 50 per cent of this supply was gifted to Ethereum’s co-founder Vitalik Buterin, who then donated a majority of it towards an Indian privately-held Covid-19 relief fund.
The remaining supply of SHIB was locked in Uniswap. But such a big number of coins circulating in the market was preventing its price from moving further up. It was a classic demand and supply situation. So, to limit this, the creators of SHIB started burning a certain amount of SHIB earlier this year. The most recent burn by the Bigger Entertainment CEO resulted in the burning of 1.14 billion coins so far.
Moving Ahead
Shiba Inu was started as a joke rival to DOGE in August 2020 by someone who goes by the pseudonym “Ryoshi”. Since then, SHIB has come along a long way to establish itself.
Listings: The meme coin was listed on the Australian crypto exchange CoinJar just ahead of Christmas. In a blogpost they said, “Starting today you can buy, sell, send and trade Shiba Inu ($SHIB) using your CoinJar Wallet. With CoinJar Card you can even use SHIB to do some last-minute Christmas shopping.” This was a major positive development for the creators of SHIB who are trying to find more use cases of its token.
Shiba Inu was also listed on Taiwan’s biggest crypto exchange BitoEx earlier this December, which was announced in a tweet.
Metaverse: Earlier in December, Shiba Inu’s core developers (SICD) and its creator Ryoshi announced that they are trying to build their own metaverse “Oshiverse”. They were quoted as saying, “We are working on so many parts of Shiba Inu like Shibarium, Shi, Shibanet, The Decentralized Shiboshi Game, Incubator, and much more that won't become visible until the near future.” The metaverse field has become one of the fastest-growing in the crypto industry, ever since the parent company of facebook changed its name to Meta.
Roadblocks On The Way
Last week, Canada’s telehealth company ‘Ask the Doctor’, which had earlier bought and continued to hold various cryptocurrencies like Bitcoin, Cardano, Polkadot, Dogecoin, Floki Inu, and Shiba Inu in its balance sheet, suddenly took a spiteful turn against SHIB.
They have reportedly sold all of their SHIB tokens and alleged that the creators of SHIB are a fraud since they are still anonymous. They were quoted as saying in a tweet by Cryptopotato, “Why is @ShytoshiKusama not revealing himself? Easier for scammers to hide from law enforcement and people coming after you? $shib is a scam #shibarmy, the 1% real is brainwashed and 99% is bots.”