Unexpected Shiba Inu (SHIB) Burn: Coinbase User’s Accidental Action Drives 28,145% Spike

Shiba Inu recently witnessed a dramatic increase in the Shiba Inu (SHIB) burn rate. This happened after a Coinbase user who hadn't been active for 154 days suddenly burned 96 million SHIB tokens. Consequently, the burn rate increased significantly by 28,145%.

Massive Token Burn: What Happened?

According to the Shiba Inu burn tracker, Shibburn, an unknown wallet, burned over 96 million SHIB tokens in a single transaction at 21:19 (UTC) yesterday.

96,086,320 $SHIB -> transferred to dead wallet. https://t.co/WfS5TxBX3r

- Shibburn (@shibburn) August 29, 2024

This wallet, which likely belongs to a Coinbase user, had been inactive for months. However, it suddenly sprang to life and made this large token burn. As a result, the Shiba Inu burn rate increased by 28,145%, the largest in two months.

Meanwhile, Etherscan data shows funds from Coinbase have been sent to this wallet several times. The recent burn is part of a broader effort to reduce Shiba Inu's supply.

So far, the community has burned over 410 trillion SHIB tokens, including burns by individual investors and Ethereum co-founder Vitalik Buterin.

But that's not all; the Shiba Inu team is working on more ways to burn tokens. The team introduced ShibTorch, a burn portal that automates token burns from Shibarium transactions.

Introducing #ShibTorch!

The long awaited community Burn Portal is now live. Every #Shibarium L2 transaction now helps burn $SHIB, reducing the total supply.

Start burning today https://t.co/NL6HAkE90j

- Shibarium Network (@ShibariumNet) August 16, 2024

It is believed that token burns could positively impact prices by reducing the circulating supply and spiking demand.One X user commented on the Shiba Inu team's post: This bull run will be epic for Shib. Just buy and wait for a bull run."

According to a blog post, ShibTourch has features from EIP-1559 that can help predict transaction fees. Moreover, they've launched ShibDev, a developer tool to build on Shibarium. This could lead to more apps on the network, increasing its use and, in turn, burning more tokens.

Ready to build on Shibarium? #ShibDev offers a complete suite of tools and resources to streamline your development process on Shibarium, the Shib ecosystem's Layer 2 blockchain. Our platform includes essential features such as API management, node access, on-chain data,... https://t.co/8CAob2QOpY

- (@LucieSHIB) August 28, 2024

Kraken Adds Shiba Inu (SHIB) as Collateral for Futures Trading

Kraken, a major crypto exchange, has made a bold move. It added Shiba Inu (SHIB) as collateral for futures trading, allowing Kraken Pro users to trade SHIB in over 200 futures contracts.

New collateral added for futures: $SHIB @Shibtoken

You can now use SHIB to get exposure to over 200 perpetual futures.

Simply transfer SHIB from your Kraken spot wallet to your Futures wallet to get started. https://t.co/CNg2RZ1YqF

*Geo restrictions apply pic.twitter.com/LJKj9O1AIZ

- Kraken Pro (@krakenpro) August 29, 2024

This could open a new door for SHIB fans, allowing them to do more with their tokens than hold them.

To use this new feature, SHIB owners need to move their tokens to a special wallet, a futures wallet. This wallet is different from the regular spot wallet. Once the tokens are there, they can be used as collateral.

SHIB fans are excited about this news. Even Shytoshi Kusama, the lead developer of Shiba Inu, posted a smiling emoji with a halo.

Interestingly, SHIB's price seems to have reacted positively to this development. According to CoinMarketCap, it's up by 1.20% in just one day. However, it's down by 1.22% in the past week. The SHIB token is worth about $0.00001419 with a market value of $8.36 billion.

The post Unexpected Shiba Inu (SHIB) Burn: Coinbase User's Accidental Action Drives 28,145% Spike appeared first on The Tech Report.