Shiba inu price rises after coin burn

A cryptocurrency that was created as a spin-off from a joke about a dog meme is surging in price on the digital coin exchange.

A cryptocurrency that was created as a spin-off from a joke about a dog meme is surging in price on the digital coin exchange.

The shiba inu coin rose by a staggering 18.8 per cent in value over the weekend.

The massive spike came after the coin’s mysterious developers announced a coin burn, which means tokens are taken out of circulation, permanently.

This jacked up the price of shiba inu, or SHIB as it is known on the cryptocurrency exchange, because there will be less supply and more demand for the coin.

At time this writing, the coin trades for around $0.000010, according to CoinMarketCap.

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Shiba Inu spiked earlier this year. Over the weekend, it was back on the up.

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Shiba inu started with a supply of 1 quadrillion coins, however that number has since dwindled after multiple coin burns.

In May, rival cryptocurrency boss Vitalik Buterin, who founded ethereum, was gifted 50 per cent of all shiba inu coins.

He “burned” most of them by putting them in a digital wallet inaccessible to everyone, then donated the rest to charity.

This sparked the coin’s all-time high in May 10 of $0.000052, which is roughly 400 per cent higher than it is right now, despite the 20 per cent rise.

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The joke cryptocurrency is taking off. Picture: Jakub Porzycki/NurPhoto via Getty Images

The shiba inu coin was created in August 2020 by an anonymous person who called themselves “Ryoshi”.

The mystery founder created the coin as a spin-off of dogecoin.

In late 2013, US software engineer Billy Markus and Australian entrepreneur Jackson Palmer created dogecoin as a joke to make fun of the wild speculation in cryptocurrencies at the time.

They used a Japanese dog, a shiba inu, as a mascot for their coin.

Dogecoin is currently selling for 0.35c.

Experts have predicted that doge and shiba inu will experience significant gains in coming years, despite their jokey origins.

This dog is the mascot of both Dogecoin and Shiba Inu coins. File photo. Picture Annette Riedl/picture alliance via Getty Images

For context, bitcoin launched back in 2009 selling for less than a cent but by 2011, was worth $1 per coin.

Now bitcoin is worth $62,000 to buy a single one of its coins.

Bitcoin has a market capitalisation of $1.1 trillion, according to CoinMarketCap.

The second biggest cryptocurrency, ethereum, started trading for $3.76 in 2015. It is now worth $4,276 per coin.

Ethereum has a market capitalisation of $275 billion.

Shiba inu has a market cap of $4.09 billion while dogecoin is worth an estimated $45.5 billion.

Originally published as Shiba inu price rises after coin burn