Shiba Inu (SHIB) team member Lucie recently announced a big move for the project: a significant token burn.
Lucie shared on X that the team has gathered 40 ETH, equivalent to about $158,200, to buy tokens for the burn.
Shiba Inu (SHIB) Prepares for Major Burn: Will it Impact Price?
The Shiba Inu (SHIB) project is gearing up for a significant token burn, as announced by team member Lucie. With around $158,200 collected, approximately 4.5 billion SHIB tokens are set to be burned. While this move might suggest a spike in SHIB’s burn rate, which is currently down by 67.04%, burning 48 million tokens in the last 24 hours, its impact on price remains uncertain.
Source: Shibburn
Despite the substantial number of tokens slated for burning, it’s important to note that this amount is still relatively small compared to SHIB’s circulating supply, which currently stands at around 589 trillion tokens. Given this ratio and the large supply of tokens in circulation, the burn might not lead to a significant price spike.
Additionally, historical data suggests that while SHIB has experienced burn rate spikes after rallies, it has rarely translated into a notable price increase. Therefore, while the upcoming burn is a significant development for the project, its immediate impact on SHIB’s price remains to be seen.
Shiba Inu (SHIB) Prepares for Major Burn: Impact on Price Anticipated
The Shiba Inu (SHIB) team is reportedly working on a new burn mechanism that could potentially burn trillions of tokens annually. Although the launch date for this mechanism remains undisclosed, if successfully implemented, it could lead to a significant reduction in SHIB’s supply, potentially resulting in a rise in prices.
One of the significant catalysts for SHIB’s remarkable rally in 2021 was Vitalik Buterin’s substantial SHIB burn. Buterin received half of SHIB’s total supply upon the project’s launch. However, in a surprising move, the Ethereum (ETH) co-founder opted to burn 90% of the tokens he received, effectively reducing SHIB’s overall supply. This burn played a crucial role in boosting SHIB’s value and attracting investor interest during the peak of its rally.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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