Dogecoin Clone Turns to Vitalik Buterin for Coin Burn

Key Takeaways

  • Shiba Token, a Dogecoin clone, has deposited half of its supply into the wallet of Ethereum creator Vitalik Buterin.
  • The move is an attempt to carry out a coin burn, keeping prices high by removing a portion of the supply from circulation.
  • SHIB’s value has risen by more than 1,500% over the past week.

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Ethereum creator Vitalik Buterin has involuntarily accumulated 50% of Shiba Token’s supply over the past year. This week’s donation attracted attention as the token’s price rose significantly.

What Is Shiba Token?

The rapid rise of Dogecoin has led other projects to create imitators, including Akita Inu (AKITA), Doge Killer (LEASH), and Weed Doge (WOGE). However, the most successful is Shiba Token (SHIB).

Shiba Token has no connection to Dogecoin, but the project clearly is designed to capitalize on its similarity to the original. Both projects use the Shiba Inu “meme” dog as their de facto mascot.

“Nicknamed the Dogecoin Killer, this ERC-20 only token can remain well under a penny and still outpace Dogecoin in a small amount of time (relatively speaking),” the project’s website reads.

Shiba Token appears to have few technical goals. Rather, it aims to leverage market trends to climb through the ranks. It has seemingly succeeded in that goal: its price has risen quickly over the past week, gaining more than 1,500% over that period.

Buterin’s Wallet Used as Burn Address

Despite the coin’s apparent takeoff, much of Shiba Token’s price gains appear to be artificial. The project sent 50% of its circulating market cap to the wallet of Ethereum creator Vitalik Buterin over the last year. His wallet now holds $13 billion of the coin.

The most recent deposit to Buterin totaled 3.1 billion SHIB, an amount worth approximately $90,000.

The Shiba Token project considers this action a “coin burn”—a commonplace strategy for driving up the value of new tokens.

Buterin is not connected to the project. However, he has…

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