The value of cryptocurrency changes rapidly because it is a de-centralized form of currency. The Shiba Inu went through this during the past few days. After Vitalik Buterin, a cryptocurrency billionaire donated a massive amount to India, the value of the currency was devalued significantly.
Vitalik Buretin co-founded another cryptocurrency called Ethereum. He witnessed the rapid increase in the value of Ethereum. However, they mostly used the emergency currency Shiba Inu when donating to India to overcome their battle against COVID-19.
The inspiration behind Shiba Inu is Dogecoin. It is inspired by the Shiba Inu meme too, and it can be traded at a lower rate. The currency grew by a whopping 1621.50% this week, for a brief moment. The value saw a fall after the currency was criticized by Antony Portno, who’s the founder of Traders of Crypto. Portno stated that the Shiba Inu coin tries to take advantage of the Dogecoin hype. He noted that that the Dogecoin has been around for a number of years, and has some actual merit, and called Shiba Inu a ‘very manipulative and cynical asset’.
Following this, Shiba Inu further devalued after Vitalik Buretin’s donation of $1.2bn of Shiba Inu (SHIB) coin to Indian non-profit organizations. Some additional donations were also made through some other types of cryptocurrencies. Despite the fall of Shiba Inu, Polygon’s co-founder reassured investors that they will spend the money ‘responsibly’.
One thing we have learnt from Ethereum and @VitalikButerin is importance of community
We will not do anything which hurts any community specially the retail community involved with $SHIB
We will act responsibly!
— Sandeep – Polygon(prev Matic Network) (@sandeepnailwal) May 12, 2021
Shiba Inu Drops In Value By 40%
Currently, India reports around 4000 COVID-19 deaths per day. New cases are showing a rapid surge with around 300,000 daily infections. India is struggling to fulfill the demand for cylinders and other essential supplies to help people overcome the virus.
The donation was made in hope of funding this endeavor. However, it’s not that simple. Since the donation, Shiba Inu has dropped in value by 40%. Since the currency is losing worth, the donation is losing worth and it cannot be spent immediately.