$100,000 Shiba Inu Burn Causes 250,000% Surge, Warning Investors
One transaction burned $100,000 worth of SHIB tokens, 252,910% increasing the Shiba Inu burn rate. This usually bodes well for the Shiba Inu price, but Susbarium warns investors to avoid such token buns.
Shiba Inu Burn Rate Rises, But It May Be Bad
In the previous 24 hours, Shibburn burned 5.6 billion SHIB tokens, a 252,910% increase. Most were burned in one transaction, 5.5 billion SHIB. A large burn is bullish for Shiba Inu because more coins burned will increase its value.
Susbarium cautioned SHIB investors about this burn transaction in an X post. Some projects utilize huge burns to entice Shiba Inu community members with presales or low-quality coins, the site said. The platform says this has occurred before and will again.
Susbarium advised the Shiba Inu community to check the big picture to avoid such ventures. The fraud detector advised investors to follow ‘DYOR’ advice while considering the big picture. Investors should look beyond the burn transaction to the team's past, future, and token usefulness.
Second, Susbarium advised Shiba Inu investors to evaluate the token's distribution and how much goes to the team or insiders. A large team or insider allocation may be suspicious. Investors should also consider token form, liquidity, and supply. Balanced initiatives are safer, according to the platform.
Finally, Susbarium advised SHIB investors to scrutinize marketing. The platform observed that influencers and major accounts seldom promote for free. Thus, investors should be aware of influencers promoting a business and examine the facts before investing.
The Token Burn: Team Reaction
Lucie, Shiba Inu's Marketing Lead, was astonished by the $100,000 worth of SHIB tokens burned, since it's not a daily statistic. Her sharing of Susbarium's warning concerning investor burns seems to reinforce it.
In response to Susbarium's message, Shiba Inu developer Kaal Dhairya said, “Love this account,” supporting the SHIB investor warning.
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