The cryptocurrency Shiba Inu has seen its value fall further after a crypto billionaire donates a significant sum to India.
Due to the de-centralised nature of cryptocurrency, its value can change rapidly. Shiba Inu has experienced this over the last couple of days, and cryptocurrency billionaire Vitalik Buterin has now significantly devalued the currency.
Vitalik Buterin is the co-founder of the cryptocurrency Ethereum and has seen their currency rapidly increase in value. However, when they decided to donate to India’s COVID-19 battle they primarily used the emerging currency Shiba Inu.
Shiba Inu has been inspired by Dogecoin. Similar to Dogecoin, the currency draws inspiration from the Shibu Inu meme, but it is tradeable at a lower rate. On the back of this, the digital currency briefly saw a surge in value this week and grew by 1621.50%. However, this changed quite suddenly after Antony Portno, Founder of Traders of Crypto criticised the currency.
Portno noted that:
The Shiba Inu coin is one of many new coins to try to take advantage of the Dogecoin hype. While Doge was around for many years and has some actual merit as the one ‘fun coin’, Shiba Inu is a far more manipulative and cynical asset.
The value of the currency has now been further reduced as 27-year-old Vitalik Buterin donated $1.2bn of Shiba Inu (SHIB) coin to non-profit organisations in India. There was also additional donations through other kinds of cryptocurrencies.
Despite the donation lowering the value of Shiba Inu, co-founder of Polygon has reassured investors that the money will be spent ‘responsibly.’ To do this, the liquid currency may not be readily made available to invest in the healthcare systems required to tackle COVID-19.
At the moment, India is facing close to 4,000 COVID-19 deaths a day. Furthermore, new cases are growing rapidly with over 300,000 people being infected with the virus daily. As a result, the country has attempted to find oxygen cylinders and other essential supplies to help people survive the virus. It is hoped that the donation will help in this endeavour. Unfortunately, it may not be that simple.
Many will want that these donations to help those in need. However, since the donation, Shina Ibu has already dropped in value by 40%. With this in mind, the value of the donation is rapidly depleting because the currency is losing worth and can’t be spent immediately.