X account @susbarium, which is affiliated with the Shiba Inu team, has posted a warning for the community, drawing its attention to the massive $100,000 SHIB burn that took place in the past 24 hours – 5,612,878,479 SHIB, according to Shibburn.
Recent SHIB burn with 252,910% rise could be "quick attention play"
The tweet said that there has been a massive burn of Shiba Inu coins worth roughly $100,000 today. The team behind the account pointed out that the SHIB army should stay cautious despite the huge amount of destroyed meme coins.
According to the lengthy tweet, some projects are likely to start burning large amounts of SHIB as they chase their specific goal — to “pull in the SHIB army with presales or low-quality tokens.” The warning stresses that “this isn’t the first time, and it won’t be the last.”
🚨 Warning: Tokens Burning Shib to Attract Attention! 🚨Today, a token burned $100K in Shib, which might catch your attention—but let’s stay cautious. Some projects use these big burns to pull in the ShibArmy with presales or low-quality tokens. This isn’t the first time, and…
— Susbarium | Shibarium Trustwatch (@susbarium) October 31, 2024
The massive burn is likely to be “a quick attention play,” the tweet states, warning SHIB holders that before jumping in on any projects that help burn SHIB, they should look at the full picture in detail and DYOR – an acronym that means “do your own research.”
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DYOR tips from SHIB team
The tweet also contained a few tips that can be useful not only for SHIB users but also for all cryptocurrency holders as to how to estimate crypto projects and determine whether they are worth investing in.
The first is an assessment of a project’s goals. It is important to look beyond the SHIB burns they are making, to check the background of the team, the roadmap they have published and see if their token has any real utility.
The second bullet point is the importance of checking the allocation and the team’s holdings. This includes reviewing the distribution of their token - how much of the supply is allocated to the team or its insiders. If this percentage of allocation is high, this could be a red flag, the tweet says.
Those steps are followed by tips to understand the tokenomics and look at the promotion methods the team uses. It is important to look into the token supply, its liquidity and the token’s structure. It is important to note, according to the tweet, that “influencers and large accounts rarely promote for free.”
