Recently, the Shiba Inu burn rate witnessed an astronomical increase of 252,910%, driven by a massive transaction that saw $100,000 worth of SHIB tokens burned. While such significant burn events are often perceived as bullish indicators for the Shiba Inu price, the scam detection platform, Susbarium, has sounded a note of caution to investors, highlighting the potential for deceptive practices.
Understanding the Recent Surge in Shiba Inu Burn Rate
According to data from Shibburn, over the past 24 hours, the burn rate for Shiba Inu has experienced a dramatic surge, with 5.6 billion SHIB tokens being incinerated. The majority of this burn, approximately 5.5 billion SHIB, was concentrated in a single transaction. Typically, a burn of such magnitude is seen as a positive development for the Shiba Inu price, as reducing the supply can increase the coin’s value over time.
Why Investors Should Exercise Caution
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Despite the promising outlook, Susbarium, a scam detector platform, has issued a warning to SHIB investors. In a recent post, the platform cautioned that some projects might exploit large burns to lure in Shiba Inu community members with presales or low-quality tokens. This tactic is not new, and Susbarium emphasized that it is likely to be repeated in the future.
Conducting Due Diligence: Essential Steps for Investors
To safeguard against potential scams, Susbarium advised the Shiba Inu community to conduct thorough due diligence. This includes scrutinizing the broader context beyond the burn transaction. Investors are encouraged to investigate the team behind the project, assess the roadmap, and verify whether the token offers genuine utility.
Furthermore, Susbarium recommended examining the token’s distribution to determine how much of the supply is allocated to the team or insiders. A disproportionate allocation can serve as a warning sign. Additionally, evaluating the token’s supply, liquidity, and overall structure can provide insights into its security and stability.
Lastly, Susbarium urged investors to critically assess promotional activities. Influencers and prominent accounts seldom promote for free, so any endorsements should be carefully vetted before making investment decisions.
Community Reactions to the Token Burn
Within the Shiba Inu community, key figures have responded to the recent burn event. Lucie, Shiba Inu’s Marketing Lead, expressed surprise at the $100,000 burn, noting its rarity. She also echoed Susbarium’s cautionary message by sharing the platform’s warning with the community.
Additionally, Shiba Inu developer Kaal Dhairya showed support for Susbarium’s warning, commenting positively on their post. Susbarium has also recently alerted the community to be vigilant about scammers promoting counterfeit ‘TREAT’ tokens, emphasizing that no official token has been released by the team yet.
Despite the heightened burn activity, the SHIB price continues to face challenges. Investors are encouraged to approach with care, armed with the knowledge to make informed decisions.
