The Shiba Inu burn initiative is a move by the meme coin team to reduce the circulating supply while also attempting to induce a price hike over the long term. Recently, a 2 billion Shiba Inu tokens burn activity occurred on May 2, 2021, which caused the burn rate to spike by over 30,000%. However, the 2 billion SHIB burn transaction raised suspicion due to the apparent inactivity of the wallet address that conducted it. The wallet address first received two billion SHIB tokens from Uniswap V3 and then transferred the entire amount to a dead wallet address, effectively removing them from circulation.

Supporters of Shiba Inu argue that the burn activity is positive for the token due to the limited supply and the potential for prices to increase in the long run as a result of this burn. This theory has backing from previous events; in the short term, the burns can cause bumps in prices, while in the long term, prices may remain closer to the pre-burn value until the next burn occurs.

In any case, the Shiba Inu burn activity is certainly a major development in the space and will be something to watch out for over the coming days. Despite recent suspicions, it remains a promising move for Shiba Inu supporters who may see their token’s value increase in the long run. Whether or not the team is up to anything shady remains to be seen, but only the future can bring a definitive answer.



Other News from Today