- Shiba Inu launched a token burning platform to let hodlers burn their tokens to earn passive income
- The coin’s burn rate spike to 130% recorded a token burn worth $ 1.13 billion in the last 7 days.
- The token burning mechanism may give SHIB an edge over DOGE
Not all crypto assets can be tied to the ‘Greater Fool Theory’.
There are many tokens out there in the crypto market from the mighty Bitcoin to Ethereum, Dogecoin and Shiba. Anyone interested in the crypto investing domain may have innumerable questions like ‘Is ShibaInu worth investing in? Does ShibaInu have a future? Can a memecoin have value? The answer to this question is ‘’Every crypto asset has some use case and potential development plans to receive appreciation for its token.
Additional Read: Top Crypto Prices Today!
Shiba Inu’s token burning mechanism: How will it impact the token?
There are 549,063.28 billion SHIB tokens in supply. The team of Shiba Inu created a token burning mechanism on Apr 23, 2022. The core purpose of the token burn mechanism is to make the token supply scarce. The ‘Shiba Army’ has responded well to the token burning initiative.
The value of SHIB has shown a ‘Flag Formation’ with some upward trends to break the upper border. A pattern like this usually indicates a consolidation phase for the asset. Given the fact that the token was down on the heatmap and a huge chance of reversal is expected.
The progress on making the token scarce through the burn token model can take a lot of time considering the fact that the total supply is well over 589,735,030,408,323 with a market cap of $ 6,691,116,380. According to crypto analysts, it could take a while for SHIBA to pass DOGE.
Are there any other factors that can reverse the fate of SHIB?
- The investors and community both turned bullish after Shiba Inu announced its partnership with Visa. The card allows users to make payments to burn SHIB tokens.
- The meme crypto project also partnered with some eminent brands like Disney, Netflix. Shiba Inu is developing its own metaverse, ‘SHIB The metaverse’.
- Vitalik Buterin, the co-founder of Ethereum has been one of the supporters of Shiba. He catalyzed the 41% Shiba tokens burn in May last year. Shiba also funded a few students’s PhD research on AI. Buterin took Twitter to thank the project for funding these researchers.
What is Shiba Inu?
Similar to DOGE, Shiba Inu was inspired by a meme on the internet. The crypto asset was invented for fun and its real value was realized when the asset was used to rescue real, live Shiba Inu dogs with the Shiba Inu Rescue Association. Similar to DOGE, Shiba Inu too has been used to send relief during crises like Covid in the past.
Additional Read: Shiba INU Price Prediction
The crypto market crash shook most of the crypto tokens and meme coins are no exception. The token burn initiative has gained massive reception as $ 400 trillion tokens have been burnt as of today. This initiative is the best chance for the token to see a reversal from its ongoing downtrend. The burn model was inspired by Bitcoin’s consensus mechanism.