Remember All That SHIB Vitalik Buterin Burned? It’s Now Worth $32.5 Billion
Remember in early May when Ethereum co-founder Vitalik Buterin burned more than $6.7 billion worth of SHIB tokens? Well, they’re not worth $6.7 billion anymore. At today’s prices—which have blown up 98 million percent si...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Remember in early May when Ethereum co-founder Vitalik Buterin burned more than $6.7 billion worth of SHIB tokens? Well, they’re not worth $6.7 billion anymore.
At today’s prices—which have blown up 98 million percent since New Year's Day, according to figures taken from CoinGecko,—that figure has almost quintupled to $32.5 billion.
Here’s how.
Shiba Inu comes to lifeThe anonymous developers of Dogecoin knockoff Shiba Inu (SHIB) had outlined in their “woofpaper,” a play on the marketing document, that they were sending 50% of the total supply to Buterin’s address to remove it from circulation.
They banked on the tokens being as good as burned, hoping the gesture would drive the price of SHIB up, as long as demand rose and the supply remained capped.
At the time of the transaction, Buterin held 505 trillion SHIB, or about $8 billion back in early May when the news hit the press.
Rather than disappoint SHIB fans by suddenly selling his supply, Buterin held onto his memeable trove. Atleast, for a period.
What happened next?In late May, Buterin sent gifts of SHIB, and various unsolicited crypto donations he’d received, to several different charitable causes around the world. He gave 50 trillion SHIB (about 1.2 billion at the time) to India COVID Relief Fund, for example.
Five days after the market learned of Buterin’s charitable donations, Buterin then burned about 90% of his remaining SHIB holdings. He sent 410 trillion SHIB ($6.7 billion at the time) to a dead blockchain address, removing them from circulation.
Cathie Wood's ARK Invest Buys Meme Stock Robinhood Amid SHIB, DOGE RallyButerin attached a note to another transaction at the time, which clarified that he would prefer makers of cryptocurrencies give them to charities, saying: “I don't want to be a locus of power of that kind.”
Buterin took the high road, destroying what amounts to over $32 billion today. At press time, one SHIB is currently trading hands at $0.00007661, according to CoinGecko.
But the reality is, had he held onto it, Shiba Inu might not have reached its current eye-watering figure. Moreover, had he sold it, the price of Shiba Inu would have certainly plummeted from the sudden surplus flooding the market.
According to Etherscan, Buterin still holds 3,457,471 SHIB, a sum worth just $268.
Why this matters
This altcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on DecryptRelated market context
Frank Holmes: They Will Print $100 Trillion – Why to Buy Bitcoin & Gold
Bitcoin Magazine Frank Holmes: They Will Print $100 Trillion – Why to Buy Bitcoin & Gold Bitcoin miners already have the power, th...
Unpatched Eclair Bitcoin Lightning nodes could crash again every time they restart
A newly disclosed unfunded-channel flaw could leave Eclair, a Bitcoin Lightning implementation, crashing repeatedly without an att...
XRP Price, $300M ETF Demand, and 45% Q3 Supply Overhang
XRP price rose more than 45% in Q3 as U.S. spot XRP ETFs attracted about $307.9 million, yet the token entered October near $1.50...
US targets $17 billion Russia-linked crypto payment network using USDT as an escape route
The US sanctioned the Russia-linked A7 Network and proposed new restrictions to cut its crypto intermediaries off from global mark...
Bitcoin ETFs are $5 billion away from a new flow record after a brutal 11-month reset
US spot Bitcoin exchange-traded funds (ETFs) recorded their first daily outflow in more than two weeks, interrupting a recovery th...
Bitcoin survived 5% yields but crypto’s cheap-money era did not
The US 10-year Treasury yield touched 5.34% on Oct. 1, its highest since 2002, capping a third quarter in which it climbed almost...