Shiba Inu is a well-known meme coin in the crypto space. The Japanese-bred hunting dog, Shiba Inu, is featured as the mascot for the meme coin. It’s commonly contrasted with Dogecoin. In fact, proponents of Shiba Inu claim that it “is going to be the Dogecoin killer.”
In August 2020, an unknown individual or group calling themselves Ryoshi launched the meme coin. Shiba Inu began with a total of 1 quadrillion (equal to 1,000 trillion) coins. Since then, the entity has attempted to burn these coins in order to boost their worth on the cryptocurrency market.
How does Shiba Inu burning work, and why is it important?
Shiba Inu has been burned in an attempt to reduce its 1 quadrillion circulating supply since its debut in August 2020. The midway point is rapidly approaching. Since September, 329.8 million Shiba Inu tokens have been destroyed, according to Shiba-burn-tracker.com.
To combat the oversupply issue, the Shiba ecosystem burns tokens on a daily basis. The most significant burn in the last 30 days happened on Aug. 31 and amounted to 455,699,414 SHIB. Because of the over-surplus initial supply, it’s more difficult for capital inflow to impact token price positively.
The Shiba Inu community has its sights set on a $0.01 token price, which would require a market cap of just under $5.5 trillion to achieve based on the current circulating supply. This figure equates to more than 5 times the existing total market cap for cryptocurrencies.
The number of SHIB tokens in circulation decreases over time as people burn them, which should theoretically increase the price of SHIB. The website shibburn.com shows the effect that burns have had to date. However, obtaining that point will take some time due to the immensity of a quadrillion.
The crypto winter set SHIB back quite a bit, but it’s still going strong. According to CoinMarketCap, SHIB is currently trading at $0.000012 USD with a 24-hour volume of $447,601,671 USD. The meme coin has seen a slight dip of 4.48% in the last day, but overall it seems to be doing well considering the market conditions.’
The Shiba Inu burning portal and how it works
The team who created one of the most viral doge-inspired memecoins now offers a burning mechanism that allows users to not only burn their tokens but also make passive income. The Shiba Inu burning portal is a function that lets holders send their SHIB tokens to a specific-burn address.
ShibBurn was inspired by Ethereum creator Vitalik Buterin’s $6.7 billion SHIB token burn in May 2021. The portal features three addresses for burning, two of which are dead wallets, and one is a ‘black hole’ address.
This is a wallet from which SHIB will no longer be retrievable, indicating that they can never be recovered once the funds are delivered. They’ll be gone for good with just one click.
If you send crypto tokens to this address, know that these wallets’ corresponding private key is unavailable. In other words, there’s no retrieving your sent tokens. However, this introduces a system that can reduce the abundance of circulating supply, making the tokens more scarce/valuable.
In theory, this benefits investors because a scarce asset is usually more desired than one with an unlimited supply of high inflation rates. Of course, all of this is merely theoretical, and there’s no assurance. Finally, while fixed or reduced supply does not always lead to a higher value, the result of the burning portal has yet to be seen.
The team decided to create the portal after seeing how much the community wanted it. To encourage users to burn their tokens, the SHIB team provides them with a potential passive income source.
Those who burn SHIB will receive a token called burntSHIB. The owners of the latter will be rewarded with RYOSHI tokens. 0.49% of all transactions made with RYOSHI will be distributed to the holders of burntSHIB. In only five days, 20 billion Shiba Inu were successfully burned on the portal by users.
SHIB metaverse is underway
In a recent blog post, Shiba Inu shared plans to develop a Metaverse called WAGMI in conjunction with art studio The Third Floor. Presently, the project is still in its initial phases as ideas are being hashed out via concept artwork.
The post said that it’s typical in film and video game development to “present a set vision” and foster “a deep connection with the atmosphere.” The sketch below depicts the WAGMI temple and its surroundings, which are described as a “zen-inspired architecture” that reflects the idea of a chill and soothing environment.
1,00,595 virtual land plots will be available for purchase in the Shiba Inu metaverse. 36,431 of these plots will be located in four different virtual districts and will be made available shortly after launch.
The meme coin’s inclusion of a ‘use case’ as a crypto payment gateway has been a hot topic among the cryptocurrency community. The token now has a ‘use case,’ thanks to NOWPayments’ integration with its Point-of-Sale (PoS) terminal. Businesses may now use SHIB to make large payments.