Shiba Inu Founder 'Locks' Half of Supply..."Prices Rise Due to Supply Shortage"

▲ Shiba Inu (SHIB)/AI-generated image

The Shiba Inu (SHIB) founder's initial decision to transfer unknown assets led to a massive supply evaporation, becoming a decisive turning point that shaped the fate of the Shiba Inu ecosystem.

On April 11 (local time), crypto media outlet U.Today reported that the supply lock-up measure previously undertaken by Ryoshi, the founder of Shiba Inu, is acting as a key driver in the current formation of the asset's value. In 2021, Ryoshi transferred 50% of the circulating supply at the time to Vitalik Buterin, the founder of Ethereum (ETH), initiating an unprecedented supply adjustment that no one had anticipated.

Buterin permanently burned approximately 410 trillion SHIB tokens, which accounted for 90% of the Shiba Inu tokens he received from Ryoshi, thereby drastically reducing the market's circulating supply. The value of the assets burned at that time amounted to billions of dollars, marking one of the largest single-transaction burns in the history of virtual assets. The remaining 10% was donated to India's COVID-19 relief fund, contributing to Shiba Inu's increased recognition and the realization of social value.

Ryoshi's decision laid the foundation for Shiba Inu to build an economic system based on scarcity, moving beyond being just a meme coin. U.Today noted that this decision sealed Shiba Inu's supply in a state where it cannot be artificially controlled. Market participants highly value the founder's act of relinquishing control and entrusting the asset's fate to the market and algorithms, thereby building trust in the ecosystem.

Currently, community-led burning projects, including Shibburn, are actively underway, continuously reducing the circulating supply. Millions to hundreds of millions of Shiba Inu tokens are sent to dead addresses daily, disappearing permanently. This acts as a key variable for long-term price decline defense and value appreciation. The mechanism of real-time supply reduction provides a strong incentive for investors to hold.

Based on the founder's initial decisive action, the Shiba Inu ecosystem has secured downward rigidity and is evolving into a mature digital asset. As funds flow in from large whales and network usage increases, the burning rate is expected to accelerate further. Experts analyze that the past supply sealing measure is the biggest reason why Shiba Inu can show higher resilience than other virtual assets during a future market rebound.

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