Although basic things like the circulation and supply of cryptocurrency are one of the easiest things to spot, the differences between price tracking sites are causing confusion for Shiba Inu coin holders.
CoinMarketCap currently lists 549,095,509,738,353 SHIBs in circulation-an increase of 155 trillion SHIBs from the previous 394,796,000,000,000,000 SHIBs. To increase uncertainty, CoinGecko previously stated that the supply of SHIB was 497,730,966,630,395 SHIB. It recently updated it to the same content as CoinMarketCap.
Nearly 40% of price tracking fluctuations caused ShibArmy’s staff to feel confused, scared, and a lot of misinformation. This is a damage report.
Shiba Inu circulating supply chaos
In order to clarify what happened with SHIB supply, we have broken down the situation into various statements.
Shiba Inu Coin Devs is minting new tokens
For retail investors who only use a price tracker, finding that the supply of SHIB has increased by 40% will undoubtedly cause panic. In theory, this could depreciate the value of your holdings by the same percentage.
Therefore, some coin holders believe that the Shiba Inu team is increasing the supply of SHIB. This may even cause hodlers to cash out quickly due to fear of a sharp drop.
This is not true. The changes in CoinMarketCap are corrections to the previously erroneous list of circulating supplies. When Ryoshi first minted 1 quadrillion SHIB at the time of release, the supply code of SHIB was locked.
CoinMarketCap wants to lower the price of SHIB
Given the hostility of the cryptocurrency community towards memecoins like Shiba Inu, the conspiracy among hodlers began to spread the changes in price trackers. Various claims surfaced on the Internet The statement increased the circulating supply to reduce the value of SHIB.
Again, these claims are problematic.
The change in circulating supply has not changed the price of SHIB. If anything, it raises the status of SHIB. If the market value remains at US$27 billion before the update, then yes, the price of SHIB will fall to reflect this. However, the market value of CoinMarketCap increased by approximately US$10 billion, while the price of SHIB remained unchanged.
The reason why only CoinGecko first reported that SHIB surpassed Dogecoin is because of its higher liquidity, which is reflected in the market value. This difference is expected to be resolved.
CoinMarketCap made a mistake
A sort of Quickly browse social media It will reveal that a large number of SHIB hodlers are asking CoinMarketCap to revert to its previous supply list because this was a mistake.
Given the response from Shiba developers and CoinMarketCap, this is understandable.
Shiba’s official Twitter account shared a so-called conversation with CoinMarketCap, which price trackers described as an engineering error.
This raises a very important question. What is the supply of SHIB?
Well, it seems that the 549 trillion SHIB number is more accurate, but it is not entirely true. The main source of the decline in the supply of SHIB from the initial supply of 1 trillion came from burning money wallets. The first dead address held 410 trillion SHIB and was burned by Vitalik Buterin in May. However, the second burning wallet only had 35 billion SHIB burned through Shiboshi NFT and music playlists.
After that, CoinGecko and CoinMarketCap both seemed to indicate that the SHIB found in the India Covid Relief Fund wallet was not in circulation. This is a more controversial aspect of the supply of SHIB, because the relief fund can still transfer its 40 trillion SHIB, even though it has previously stated that it has completed the transfer of its SHIB.
Regardless of whether the supply of SHIB is 549 trillion SHIB or 590 trillion SHIB, it seems that CoinMarketCap’s initial estimate of 394 trillion SHIB is wrong. So why do hodlers want it to recover?
All this goes back to the price and the misunderstanding of the basics. Have a view With 394 trillion SHIB, the price of SHIB will rise to US$0.0001 due to the market value of US$38 billion. However, the $38 billion in market value is so high because the updated listing adds $155 trillion—not the price.
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