The 410 trillion Shiba Inu tokens burned by Ethereum co-founder Vitalik Buterin in May 2021 played no part in SHIB’s price rally to an all-time high, Shibburn clarifies.
Vitalik Buterin’s gigantic SHIB burn conducted two years ago has continued to be a discussion topic in the Shiba Inu community. To dismiss the popular notions regarding the burn event, Shibburn recently stepped in to make necessary clarifications.
On Wednesday, the leading Shiba Inu burn tracker took to X to shed light on the massive SHIB burn transaction executed by the Ethereum co-founder Vitalik Buterin in May 2021. Contrary to popular belief, the update upheld that the largest-ever SHIB burn in a single transaction played no part in the canine-themed token clinching its all-time high in October 2021.
Notably, SHIB rose to $0.00008845 on October 28, according to data on price-tracking platform Coinmarketcap. While several market participants attributed this price attainment to Buterin’s SHIB burn transaction, Shibburn submitted that the Ethereum co-founder’s action did not positively affect SHIB’s price then.
SHIB Price Dumped After Vitalik Buterin Burns
In particular, the asset plunged massively after the burn transaction by the Ethereum co-founder. The token’s price chart further shows that SHIB was exchanging hands at $0.00002 at the time of Buterin’s burn. However, its price fell afterwards to the $0.0000078 zone until an upswing kickstarted in September 2021.
According to Shibburn, Vitalik Buterin spent no money in purchasing the burned assets. He only moved 90% of the SHIB tokens received from the Shiba Inu team to the project’s dead wallet. This equated to approximately 410 trillion SHIB tokens and was worth about $6.7B at the time of the transaction. “Transferring 90% of what was given to him from one wallet to another (burn address) months later does not make the price go up,” the leading burn project remarked.
It bears noting that the Shiba Inu team gave the Ethereum creator nearly half of the token’s supply. While he burned 90% of the tokens, Buterin regifted 10% of SHIB sent to his wallet for charity purposes.
High Demand Boosted SHIB’s Price
Reacting to the 2021 rally that took SHIB to its all-time high, Shibburn submitted that high demand in Shiba Inu triggered the rally not Buterin’s burn transaction.
“The price surge in May 2021 was a result of the high demand as more and more people discovered and invested in SHIB,” part of the disclosure read.
Accordingly, several community members expect a rally in the price of SHIB and BONE, citing the rising demand for the asset post-mainnet launch of Shibarium. As reported by Nitadel, this elevated investor interest can be seen in the rising number of non-zero SHIB wallet addresses. More so, the teeming community successfully burned 564M SHIB in a week.