Last updated on May 18th, 2024 at 12:15 pm
The Shiba Inu team has come out to give reasons why Tron founder Justin Sun made such a substantial transaction involving almost 600 billion SHIB tokens.
In a recent post on X (formerly Twitter), a Shiba Inu team member known as Vet Kusama pointed out the possible reasons why crypto entrepreneur Justin Sun transferred 577 billion SHIB tokens from the Binance exchange to his public address.
As previously reported by 36Crypto, Sun raised eyebrows when he made a transfer of 500 billion Shiba Inu tokens from Binance to his wallet on December 18 and shortly after, initiated another transfer of 77 billion SHIB tokens. Both transactions were valued at almost $6 million at the time of the transfer.
Two reasons why Sun made the transactions
Kusama revealed via the post that the wallet address associated with the transaction had never received SHIB previously. According to him, there has never been a SHIB transfer in that wallet before.
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Dear @justinsuntron , today we noticed that you transferred approximately 500 billion #shib to your Justin Sun4 wallet. And this transfer took place for the first time (there has never been a shib transfer in your wallet before).
There are two possibilities:
1-) Shib burn
2-)… pic.twitter.com/O4JiLgcaUs— Vet KUSAMA ™ (@vetkusama) December 18, 2023
Furthermore, Kusama added that there are two possible reasons why the transaction must have been initiated. The first reason is that Sun intends to initiate a SHIB burn, which would mean sending all 577 billion Shiba Inu tokens to a dead wallet (burn address).
Secondly, Kusama pointed out that Sun might also intend to carry out “Shibarium bridging” – this means building a bridge from Tron to Shibarium which would require a huge amount of SHIB to facilitate.
Kusama urged Sun to inform the Shiba Inu team if this is the case so that they could be of help.
However, recall that Sun had previously announced that he intended to focus more on trading meme coins as the proceeds from the trade would be entirely sent to charity organizations. The transactions might just be in fulfillment of his plans.
Shiba Inu team releases statement on SHIB burn
Meanwhile, a member of the Shiba Inu team on Discord, DaVinci has issued a statement explaining how SHIB burn is supposed to work. Per the statement, any Shiba Inu tokens that were to be destroyed had to be bought with US dollars that came from the users’ pockets. According to him, even the SHIB team buys Shiba Inu when they want to burn it.
Another Shiba Inu team member known as LUCIE also stressed that SHIB burn is a responsibility of the Shiba Inu community and that is why “no simple dump is being done” according to her.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.