Elon Musk isn’t the only one causing crypto corrections. Vitalik Buterin set the world of meme coins aflame with a swift movement of Shiba Inu (CCC:SHIB-USD). The move is immediately impacting a class of small, volatile cryptos that have been soaring recently thanks to widespread bullishness. What does all of this mean for the Shiba Inu (SHIB) crypto?
Shiba Inu, in many ways, brought this upon itself. Rather than burning its tokens like other deflationary cryptos, Shiba Inu put 50% of its total supply in Vitalik Buterin’s wallet. A gesture of goodwill, according to the devs, essentially placed the self-destruct button into the hands of the Ethereum (CCC:ETH-USD) founder.
And what is the founder of Ethereum to do?
Rising interest in meme cryptocurrencies created real problems on the Ethereum blockchain. Transaction fees hit record highs, driving interest in Ethereum alternates and inciting frustration from certain crypto community members. At the peak of this frenzy, Buterin had more than $8 billion worth of SHIB tokens in his wallet.
Buterin withdrew 90% of the total SHIB liquidity from Uniswap (CCC:UNI-USD) yesterday, including the paired ETH coins, according to Twitter crypto watchdog War on Rugs. He also donated $1 billion-worth of SHIB to an India Covid-19 crypto relief fund created by Polygon (CCC:MATIC-USD).
What Does Buterin’s Transaction Mean for the Shiba Inu (SHIB) Crypto?
Buterin’s huge movement of SHIB is having devastating effects on the price of the token. SHIB is dropping significantly; today’s it’s down by 20% after its steep climb early in May.
Investor sentiment is also becoming panicked. So much so, in fact, that Polygon’s co-founder is having to reassure investors that they will be responsible with the huge volume of tokens.
This is not to say that everyone is bearish on SHIB now. The developers of the token released a statement last night to quell investor worries, saying Buterin’s donation “brought invaluable legitimacy to Shiba Token.” It’s worth noting that SHIB is still up over 1,000% on the week.