The burning of 100,000 USD worth of Shiba Inu caused a surge of 250,000%, warning investors
A transaction burned worth 100,000 USD of SHIB tokens, increasing the Shiba Inu burn rate by 252,910%. This often brings good prospects for the Shiba Inu price, but Susbarium warns investors to avoid such token burn transactions.
Shiba Inu burn rate increases, but it may not be good
In the past 24 hours, Shibburn has burned 5.6 billion SHIB tokens, an increase of 252,910%. The majority were burned in one transaction, 5.5 billion SHIB. A large burn is a positive signal for Shiba Inu as many coins being burned will increase its value.
Susbarium has warned SHIB investors about this burn trade in a post on X. Some projects use large burn events to attract Shiba Inu community members with presales or low-quality tokens, the website states. The platform says this has happened before and will happen again.
Susbarium advises the Shiba Inu community to look at the bigger picture to avoid such risks. The fraud detection tool advises investors to follow the 'DYOR' advice while considering the overall picture. Investors should look beyond the burn trade to assess the past, future, and utility of the token.
Secondly, Susbarium advises Shiba Inu investors to evaluate the token distribution and what percentage belongs to the team or insiders. A large allocation to the team or insiders can be suspicious. Investors should also consider the form of the token, liquidity, and supply. Initiatives with safer balance, according to this platform.
Finally, Susbarium advises SHIB investors to carefully consider marketing activities. The platform notes that influencers and large accounts rarely promote for free. Therefore, investors should be cautious of influencers promoting a business and examine the facts before investing.
Token burning: Team's response
Lucie, Head of Marketing for Shiba Inu, was quite surprised by the burning of 100,000 USD worth of SHIB tokens, as this is not a daily statistic. Sharing Susbarium's warning about investor burning seems to reinforce that.
In response to Susbarium's message, Shiba Inu developer Kaal Dhairya said: “Love this account,” endorsing the warning for SHIB investors.
