According to Lucie, a member of the Shiba Inu (SHIB) team, the project will soon carry out a significant burn. Lucie came to X and shared with the SHIB community that the team has raised 40 ETH, worth about 158,200 USD, to buy tokens for burning purposes.
158,200 USD will receive approximately 4.5 billion SHIB tokens. Sending such a significant amount of money to a dead wallet can lead to a sudden increase in SHIB’s burn rate. The burn rate of SHIB is currently reduced by 67.04%, burning 48 million tokens in the past 24 hours.
Will Shiba Inu (SHIB) reach 0.00004 USD after burning 4.5 billion tokens?
Although 4.5 billion tokens is a significant number, it is still very small compared to the circulating supply of SHIB. The project currently has about 589 trillion tokens in circulation. With the burn rate of tokens and the number of tokens in circulation, we may not see a sudden price increase.
Furthermore, although Shiba Inu (SHIB) has witnessed a sharp increase in burn rate after price hikes, this asset rarely sees price increases after burn rate increases.
However, the SHIB team is researching a new burn mechanism, rumored to be able to burn trillions of tokens per year. However, the research team has not yet disclosed the launch date of the new burn mechanism. If the project can significantly reduce the supply, there is a possibility that we will see an increase in price.
One of the biggest catalysts for Shiba Inu’s (SHIB) massive rally in 2021 is Vitalik Buterin’s massive burn of SHIB. Buterin received half of SHIB’s total supply when the project was launched. However, the co-founder of Ethereum (ETH) decided to burn 90% of the tokens he received, significantly reducing SHIB’s circulating supply.
