- Shiba Inu, one of the recently relished meme tokens following its 230 percent hike, has been called “pointless” by Michael Burry due to its huge supply cap.
- In response, SHIB’s official website said 50 percent of the supply is locked up in Uniswap, and the other half was ‘burned’ to Ethereum co-founder Vitalik Buterin.
One of the most-hyped meme tokens, Shiba Inu (SHIB), has seen a notable 235 percent surge in the past week. However, prominent hedge fund manager Michael Burry thinks the token’s supply is “pointless.”
Notably, the Dogecoin spin-off SHIB has been struggling with price in the past couple of months, trading just below $0.00001. On Oct. 4, however, billionaire Elon Musk posted a picture of his pet dog – a Shiba Inu breed. That was enough to see SHIB triple to highs of $0.00003390. The token now boasts of a $11 billion market cap, ranking it as the 18th largest cryptocurrency, per our data.
Shiba Inu is “pointless”
Despite SHIB’s skyrocketing uptrend, the investor berated the token’s one quadrillion (105) supply. In a now-deleted tweet, he commented;
Just saying, one quadrillion seconds is about 32 million years,
One quadrillion days is 2.7 trillion years, or all of the time, from the beginning of the universe, multiplied by 71,000. In other words, pointless,
The Scion Asset Management boss is famed for being chronicled by Christian Bale in The Big Short. The latter is a book showing how the 2007-2008 financial crisis was triggered by the US housing bubble. Burry is legendary for being one of the first investors to foresee the financial meltdown and subsequently massively profiteer from it.
For quite a while now, Burry has been warning investors of being over-confident in cryptocurrencies. “The problem with crypto, as in most things, is the leverage,” the investor stated. He also forecasted the crypto market’s “mother of all crashes” in June. Burry further warned that the government has the power to eradicate competition in the currency market.
The other series of deleted tweets from Burry questioned Tesla’s Bitcoin investment and sounded an alarm on Dogecoin’s record price. His tweets implied that Tesla acquired Bitcoin as a distraction to its electric car complaints from China. He also pointed out how the company’s stock trend was moving in tandem with Bitcoin. The crypto skeptic went on to predict yet another crypto market crash in the coming months.
“We are in a blow-off top in all things,” he said, adding, “Markets have now bubbled over dangerously.”
SHIB’s response and price actions
Responding to the investor’s comments, SHIB’s official website stated that there are currently only 398.4 trillion coins in circulation.
Starting with a supply of 1 quadrillion, our founder, Ryoshi, locked 50 percent in Uniswap, then ‘burned‘ the other half to Ethereum co-founder Vitalik Buterin for safekeeping.
That said, SHIB’s price dipped Thursday to below $0.000025 after whales made the largest dump (31.07B tokens) in the token’s 6-month history. However, the token rebounded and was trading at $0.00002870 as of this writing according to our data.