The Shiba Inu burn rate saw a staggering increase of 252,910%, driven by a transaction burning $100,000 worth of SHIB tokens. While such significant token burns typically indicate a bullish trend for Shiba Inu, the scam detection platform Susbarium has cautioned investors about potential pitfalls.
The recent Shibburn data revealed a dramatic surge in the burn rate by 252,910% within a 24-hour period, with 5.6 billion SHIB tokens removed from circulation. Notably, a single transaction accounted for 5.5 billion tokens. Such a substantial reduction in supply could enhance the meme coin’s value over time.
Nonetheless, Susbarium issued a warning to SHIB investors to maintain vigilance regarding this transaction. In a detailed post on X, Susbarium highlighted that certain projects leverage these massive burns to lure the Shiba Inu community with presales or subpar tokens. They emphasized that this is neither the first nor the last occurrence.
To mitigate risks, Susbarium urged the Shiba Inu community to adopt a comprehensive approach. They advised investors to conduct thorough research (‘DYOR’) that extends beyond the burn transaction. Key steps include evaluating the project team's credentials, roadmap, and the real utility of the token.
Moreover, Susbarium recommended that investors examine the token's distribution, with attention to the portion allocated to the team or insiders. Large allocations to insiders may serve as a warning sign. Investors should also scrutinize supply, liquidity, and the structural balance of the token, as well-structured projects are typically more robust.
Finally, Susbarium cautioned against promotional traps. According to the platform, large-scale influencers seldom promote for free, so investors should approach such endorsements with skepticism and verify the substantive details before committing capital.
Shiba Inu’s Marketing Lead, Lucie, expressed surprise at the magnitude of the $100,000 SHIB token burn, acknowledging its unusual nature. Her reposting of Susbarium’s warning underscores her alignment with the platform’s cautions.
Additionally, Shiba Inu developer Kaal Dhairya responded positively to Susbarium’s cautionary message, expressing appreciation for the platform. Susbarium further alerted the community to schemes involving fake ‘TREAT’ tokens, emphasizing the absence of an official token release by the team.