The Shiba Inu burn rate skyrocketed by 252,910% as $100,000 worth of SHIB tokens was burnt in one transaction. This typically presents a bullish outlook for the Shiba Inu price, but the scam detector platform Susbarium has explained to investors why they should be wary of such token buns.
Shiba Inu Burn Rate Skyrockets, But It Might Not Be Good
Shibburn data shows that the burn rate surged by 252,910% in the last 24 hours, with 5.6 billion SHIB tokens burnt during this period. A single transaction made up for most of these, with 5.5 billion SHIB burnt. A burn of such magnitude is bullish for the Shiba Inu price, considering that the meme coin’s price will ultimately become more valuable as more coins are burnt.
However, in an X post, Susbarium warned SHIB investors to be cautious about this burn transaction. The platform explained that some projects use these big burns to attract Shiba Inu community members with presales or low-quality tokens. According to the platform, this isn’t the first time it has happened, and it won’t be the last.
To avoid falling prey to such projects, Susbarium told the Shiba Inu community to ensure to look at the full picture. The scam detector outlined ‘DYOR’ tips that these investors could follow while trying to look at the full picture. First, investors were advised to go beyond the burn transaction and check the team’s background, roadmap, and whether the token has a real utility.
Secondly, Susbarium stated that Shiba Inu investors should review the token’s distribution and how much of the supply is allocated to the team or insiders. A huge allocation to the team or insiders can be a red flag. Furthermore, investors are advised to look into the supply, liquidity, and the token’s structure. The platform mentioned that projects with a balanced setup tend to be more secure.
Lastly, Susbarium told SHIB investors to question promotions. The platform noted that influencers and large accounts rarely promote for free. As such, investors should be wary when they see influencers hyping a particular project and verify the details before investing.
Team Members React To The Token Burn
Shiba Inu’s Marketing Lead, Lucie, also reacted to the $100,000 worth of SHIB tokens that were burnt and seemed surprised, considering that it isn’t a figure that is recorded daily. She also seemed to support Susbarium’s warning, reposting the post in which the scam detector platform had warned investors about such burns.
Shiba Inu developer Kaal Dhairya also reacted to Susbarium’s post, simply saying, “Love this account,” indicating his support for the warning to SHIB investors. Susbarium also recently warned the community to be wary of scammers who were promoting fake ‘TREAT’ tokens, as there has yet to be an official token from the team.
Featured image created with Dall.E, chart from Tradingview.com
Powered by WPeMatico
