Shiba Inu: Ethereum inventor Buterin crashes Dogecoin clone
Only on Tuesday we reported about the new crypto currency Shiba Inu, the SHIB-Coin . Within a few days, the token had shot up 3,000 percent and had a market capitalization of almost 13 billion US dollars from a standstill.
SHIB-Coin jumps into the top 20 cryptocurrencies
With that, SHIB managed to get directly into the top 20 of the world’s largest Advance cryptocurrencies. The world’s largest crypto exchange Binance announced that it would soon list SHIB.
That had caused criticism from experienced investors. They had warned not to overdo the hype and thus let inexperienced investors run into the open knife. Binance boss CZ was forced to comment:
Some have voiced concerns about $ SHIB listing. We follow users. There is a large number of users demanding it, to the point where we ran out of ETH deposit addresses due to SHIB today. Never happened before for any other ERC20 coin.
Not endorsing it. Super high risk. NFA. – CZ Binance (@cz_binance) May 10, 2021
In the announcement of the listing, Binance points out that 50.5 percent of all SHIB coins are on one address. She later turned out to be Vitalik Buterin, the authoritative concept behind the Ethereum network, on which the SHIB coins also run.
One day after the announcement of an explosive growth, the disillusionment comes. The Shiba-Inu price fell by more than 35 percent, and the market capitalization fell to 8.5 billion US dollars. This is still considerable for a brand new cryptocurrency.
Ethereum inventor Buterin sells coins on a large scale
The reason for the The crash can be found in the person of the Ethereum inventor Vitalik Buterin. The developers of the SHIB coin had overwritten around 50 percent of all tokens. It can be understood as a tribute or as a simple marketing measure.
Certainly the SHIB inventors hoped that Buterin would help publicize the coins, for example by giving them a mention. They presumably assumed that Buterin would not sell the coins. At least that’s how he usually deals with his huge ether inventory.
The assumption that Buterin would hold the coins for a longer period has proven to be wrong. In fact, he has sold large amounts of SHIB coins, but also other dog coins such as Dogelon and Akita Inu, converted them into ether and donated them to projects that he considers worthy of support.
The massive sale naturally makes the price drop. Not everyone likes that and it disturbs the hype. In the long term, however, the dissolution of the large stock could even benefit the coin.
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