Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply: Shiba Inu, the meme-inspired cryptocurrency, has been burning millions of its tokens since its creation.
Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply
Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply: However, the burning mechanism that is supposed to reduce the circulating supply of SHIB does not seem to be very effective in terms of affecting its value on the market. Despite daily burns of around 100 million SHIB, the token’s value remains primarily driven by speculative interest rather than the number of assets sent to burn addresses. This raises the question of why the burn rate might be ineffective.
Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply; One possible explanation is that the burning mechanism does not consider the market participants’ psychology. The number of tokens burned on a daily basis might seem significant on paper, but in practice, it might not be perceived as such by traders and investors.
Moreover, the burn rate might not be sufficient to offset the inflation caused by the SHIB token supply. In other words, the burning mechanism might not be able to keep up with the rate at which old receipts lose their value due to the enormous supply.
Another factor that might affect the effectiveness of the burning mechanism is the fact that most of the tokens are held by a small number of addresses, commonly referred to as whales. These large holders might not be willing to participate in the burning process, either because they do not see the benefit of reducing the supply or because they want to maintain their control over the token.
Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply: Furthermore, the speculative interest around the token might be driven by factors other than the burning mechanism. For example, the token’s popularity on social media and the support of high-profile figures might create hype that fuels the demand for SHIB, regardless of the number of tokens burned.
Shiba Inu (cryptocurrency)
Shiba Inu Burn Machine Has No Effect on 590 Trillion SHIB Supply: Shiba Inu token (ticker: SHIB) is a decentralized cryptocurrency created in August 2020 by an anonymous person or group known as “Ryoshi”. It is named after the Shiba Inu, a Japanese breed of dog originating in the Chūbu region, the same breed that is depicted in Dogecoin’s symbol, itself originally a satirical cryptocurrency based on the Doge meme.
Shiba Inu has been characterized as a “meme coin” and a pump-and-dump scheme. There have also been concerns about the concentration of the coin with a single “whale” wallet controlling billions of dollars worth of the token, and frenzied buying by retail investors motivated by fear of missing out (FOMO).
Shiba Inu was created in August 2020, dubbing itself the ‘Dogecoin killer’. On 13 May 2021, Vitalik Buterin donated more than 50 trillion SHIB to the India COVID-Crypto Relief Fund.
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