Ethereum Co-Founder Vitalik Buterin has reportedly burned 410 Trillion Shiba Inu Coins that were gifted to him.
Vitalik has reportedly burned close to 90% of Shiba coins in his wallet in a move that comes after he already donated 50 trillion SHIB to COVID relief efforts in India.
His reason behind burning the coins(taking them out of circulation which increases scarcity) is due to security reasons.
Shiba Inu Coin holders were ecstatic by the news and even are hailing Vitalik as a hero on forums such as Reddit due to the fact the burn will cut Shiba’s quadrillion supply in half.
One subreddit called SHIBArmy has over 110,000 members and is filled with Redditors hyping up the coin and believe Buterin’s burn could eventually start another rally for the Doge coin copy cat.
If the last couple years has taught us anything we should know by now to never underestimate a Reddit Army that doesn’t listen to what “experts” have to say about cryptocurrency.
Ethereum co-founder @VitalikButerin has burned 90% of his Shiba Inu coin (SHIB) holdings, an amount worth $6.7 billion. The rest will go to charity, he said.
— CoinDesk (@CoinDesk) May 17, 2021
— BeInCrypto (@beincrypto) May 17, 2021
Coin Telegraph covered the story and had these details to share:
Ethereum co-founder Vitalik Buterin has burned nearly half of the supply of the popular Dogecoin clone, Shiba Inu (SHIB).
In a statement embedded into the transaction on May 16, Vitalik Buterin explained why he decided to burn $6.7 billion worth of SHIB tokens, emphasizing the “generosity” of the “dog token communities.”
“I’ve actually been impressed by how the dog token communities have treated the recent donations! Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better. I support all who are earnestly doing that.”
The recent dog-themed bull run came to an abrupt end on May 12 as Buterin liquidated trillions of the tokens he was gifted by Shiba’s creators and donated the proceeds to charity.
The Ethereum co-founder said he decided to burn the remaining 90% of Shiba tokens in his wallet and allocate the remaining 10% to charitable causes. He added that charities with similar values as CryptoRelief — an Indian organization focused on supporting Covid relief through crypto-asset donations — would be considered as potential recipients.
Buterin noted that simply holding the coins entrusted to him was not an option for security reasons, adding that he wanted to avoid the frenzied speculation that could arise from him making transactions using the dog tokens in the future.
With great power comes great responsibility. @VitalikButerin did the most responsible thing he could have. Everybody wins. The amount of circulating tokens was reduced drastically. It increases the value for retail customers and it also increases the value of India's tokens.
— Shib Barbie (@ShibBarbie) May 17, 2021
— Blockcrunch (@BlockcrunchCo) May 17, 2021
Benzinga got the scoop too:
Ethereum (ETH) co-founder Vitalik Buterin, who was sent 50% of SHIBA INU’s (SHIB) token supply by the founders of the so-called Dogecoin (DOGE) killer coin, has burned a substantial amount of the gift.
What Happened: Buterin last week donated 50 trillion SHIB to India Covid Relief Fund, alongside other cryptocurrencies.
Buterin — who came into the possession of 505 trillion SHIB tokens last week — “burned” 90% of the remaining tokens in his wallet, according to a transaction record on Ethereum’s blockchain on Etherscan.io. It should be noted that the remaining 50% of SHIB is locked to Uniswap (UNI).
Burning refers to the act of sending a token to an unusable account and removing it from circulation, which diminishes supply and increases its scarcity.
The Ethereum co-founder sent 410.24 trillion SHIB tokens from his wallet, valued at $6.74 billion at the time of the transaction.
“I’ve decided to burn 90% of the remaining shiba tokens in my wallet. The remaining 10% will be sent to a (not yet decided) charity with similar values to cryptorelief (preventing large-scale loss of life) but with a more long-term orientation,” wrote Buterin in the transaction hash.
If you want to here more from Vitalik check out this conference video of him talking about Shiba Inu Coins:
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