A notable prominent Shiba Inu community entity has provided evidence showing that SHIB would have only reached half of its all-time high if Vitalik Buterin hadn’t burned his 410.2 trillion tokens.
Shiba Inu, the cryptocurrency that made headlines in 2021, is believed by many to owe part of its success to the historic 410.2 trillion SHIB burned by Ethereum co-founder, Vitalik Buterin.
Recall that Shibburn (@shibburn), the SHIB burn tracker, earlier debunked the claim that Vitalik’s massive SHIB burn solely propelled the price pump. The channel showed that demand was the reason for the meteoric rise in 2021.
In a new post on X, Shibburn aims to clarify what he meant by going into more detail about what would have happened if Vitalik had sold his tokens instead of burning them. Although the burn had minimal effect on the price according to Shibburn’s previous post, Vitalik selling his tokens would have had a profound effect.
What if Vitalik Buterin had sold the 50% of the $SHIB supply instead, or if the 50% had never been sent to him? The price could have reached $0.00004225 when Market Cap was at its All-Time High instead of $0.00008845. If it had the same demand. #SupplyAndDemand pic.twitter.com/eCGTeotCFX
— Shibburn (@shibburn) September 11, 2023
Vitalik Buterin’s Monumental Burn
When Shiba Inu (SHIB) was launched, 50% of the circulating supply was sent to Vitalik Buterin. Rather than keeping or selling them, he made a surprising move. He donated 10% of the assets to charity and sent the remaining 90% to a burn address, effectively removing them from circulation.
This burn coincided with the bull run SHIB had in 2021, which brought about its current all-time high of $0.00008845. However, it is important to note that the price of SHIB had already started climbing before this happened, as earlier proved by Shibburn.
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What If Buterin Had Not Burned the Tokens?
Shibburn presents a different scenario where these tokens were not burned. Shibburn begins the post with the question, “What if Vitalik Buterin had sold the 50% of the $SHIB supply instead, or if the 50% had never been sent to him?”
According to the post and the chart attached, if the Ethereum co-founder had not received the tokens or had decided to sell them, SHIB’s all-time high might have been just $0.00004225. This is still an impressive feat but it would have been just half of what it achieved.
This analysis shows a few things. It highlights the importance of burning tokens in the SHIB ecosystem. It also expands on Shibburn’s belief that token burns have little part to play in driving up prices.
SHIB would have still performed the same, it just wouldn’t have reached the same heights with the same demand.