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Theory of cryptocurrencies burning leads to making it deflationary and scarce is all good, but there are possibilities if extreme burning could end up worse.
One of the leading and most popular memecoin globally, Shiba Inu (SHIB), is currently going through the massive burn of SHIB tokens as decided by the Shiba Inu community for the upcoming days. The plan suggests calculative burn would minimize the circulation resulting in a price surge of remaining SHIB tokens.
As per prominent crypto tracking platforms, there are currently about 550 trillion Shiba Inu native tokens SHIB in circulation. In October, last year, the prominent meme coin saw its all-time high and achieved prestigious positions in top cryptocurrencies. However, the bull run didn’t last for long, and ultimately it dropped down, but still remained under the top 20 assets.
The underperformance of SHIB token discouraged Shiba Inu community, SHIB Army, who were expecting the prices to move on, but predictions were about further price falls. Meanwhile, the anonymous founder of Shiba Inu, Ryoshi said that the Shiba Inu token is scheduled to see massive burn in upcoming weeks while the ecosystem is looking to dive into highly anticipated blockchain gaming and metaverse space.
Lately, the investors of Shiba Inu went on change.org and started a petition. The petition contained urges from investors to develop a policy focused on burning a significant amount of SHIB tokens from current supply in the next several days.
The petitioners announced that Shiba Inu burn may lead to reducing the amount of SHIB tokens currently in circulation. However, the burning is nothing new for the meme coin where the SHIB holders have sent their SHIB to a particular burn address, and on several occasions, they even arranged burn parties for Shiba Inu tokens.
However, the new burning mechanism has not resulted in a price spike of SHIB token. A Shiba Inu developer has warned about a scam token trying to involve itself with the meme coin in a blog post. As per the developer, a bitter crypto token is portraying itself as ‘Shiba Inu: Deployer’. Further details are that it uses a smart contract on its blockchain that associates itself with Shiba Inu.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
