Shiba Inu Coin (SHIB) has been one of the most popular cryptocurrencies in the world and has been getting a lot of attention due to its burning efforts, which started in 2021. The Shiba Inu coin burn has been an issue of discussion around the world of cryptocurrency, but only a few know why it is done and why it is important for Shiba Inu and its investors. This article will let you know about the burning process because it will impact the value of the coin and the people investing in it. Before we begin, we need to understand that coin burning is not a wrong step by the company, and the burning process is used in many other cryptocurrencies to make sure that they sustain in the market for the long term.
What is the burning process?
First, we need to understand what the burning process is to know why Shiba Inu coin burning today is a hot topic in the crypto market. Whenever a crypto coin is launched in the market, it is launched in limited numbers, and there can only be a limited number of holders for it in the market. Initially, when the demand for the coin is higher with a large number of coins available, the price of the coin is inflated. However, after a while, when almost all the coins have been purchased and a very small quantity remains with the decrease in demand, the coin price starts to drop. It is where the Shiba inu burn process comes in.
Burning crypto means that they will be removing a permanent number of tokens from circulation, and it is normally done by transferring the token to a burn address, which is the address for a wallet from where it cannot be retrieved. The term is also known as destroying tokens. The overall shib inu burn process was done to reduce the overall supply of SHIB coins in the crypto market, which will create a deflationary event where the number of coins is less than the actual demand. The purpose of doing this is to increase the value of existing SHIB coins in the market by doing the Shiba Inu coin burn today. When the circulating supply of the coin decreases, the asset price automatically goes up.
What happens to the price of the coin?
You can think of the Shiba Inu coin burn schedule the same way a company buys back its shares to increase its value in the market. Companies provide the shareholders with the value and buy the shares from them. In the same way, SHIB is being brought back to decrease the circulation of the coin in the market. So what happens to the price after that? The price does not automatically increase overnight while the Shiba Inu burn process takes place. It would still take a little time, which can be a few weeks, to burn the dedicated target of coins. After the process, as the demand for coins starts to increase, so does the price. For companies that are thinking about sustaining their cryptocurrency for a long time, burning is looked upon as a positive approach in the long run.
How is Shiba Inu burning coins?
Ever since the Shiba Inu coin burn process started, it has been in the news and a hot topic in the cryptocurrency community. Apart from this, the company has already announced that they will be launching a new ecosystem very soon that will constantly burn SHIB and will make sure that the circulation of the token is managed to maintain its existing value. The in-built portal that will be created for it will have a mechanism where the tokens are automatically removed from circulation. There is no confirmation as to when the ecosystem will be launched, but it is expected to come out soon. The portal will be integrated with the Shibarium and ShibaSwap 2.0 networks. However, they have not mentioned how the actual burn process will take place.
Burn Rate for SHIB Coins?
There is currently no schedule as per which the Shiba Inu coin burn works through its tokenomics or Woofpaper. However, it can be assured that the community effort of the Shiba Inu burn process is one of the best and strongest in the world of cryptocurrency. By March 2022, the company had already burned more than 6 billion SHIB coins, and they have been doing so now at a faster speed.
Communities that have been helping in Shiba Inu coin burn
Bigger Entertainment was the first large-scale SHIB burn from the community, and using the SHIB Burner playlist and burn parties, over 1 billion SHIB coins have already been destroyed. They have also planned to create new burn events and launch a new NFT game. However, before starting it, it was confirmed that Bigger Entertainment had left the Shiba Inu space.
Shiba Inu Games
Such games are mainly meant to earn crypto by playing them, but these games do the opposite. The more you play these games, the more coins you will burn. Travis Johnson’s Bricks Burner mobile game is one of the best examples of Shiba Inu Burn. They use the ad revenue earned to send SHIB to the dead wallet, and they have burned over 1.3 billion SHIB so far and are still counting. Games like Brick Burner and many more have been consistently working on increasing the Shiba Inu burn rate.
Other Burning Initiatives
Apart from these, many other burning efforts are going on for Shiba Inu. The Shiba Inu coin burn rate is being supported by the Shiba community and its ecosystem. Companies like Shiba Coffee burn a percentage of their profits. Also, third-party tokens have been burning SHIB consistently. Many YouTube channels, gaming tournaments, and search engines are also burning SHIB. Several other factors have been helping in the Shiba Inu coin burn.
Upcoming SHIB Burns
The company has already announced that they will be automating the burning process of the Shiba coins through a new ecosystem that they are planning to launch shortly. This will not only make the burning process automated but will also make it easier for the coin to sustain itself for a longer time in the market and maintain a consistent value. Some of the upcoming Shiba Inu burn methods are:
- Shiba Inu Metaverse will burn SHIB by allowing landowners to rename their real estate.
- All the platforms based on SHIBA in the future will be able to use a burning mechanism apart from gaming
- The SHIBA burn portal and ecosystem are already in development.
- NOWPayments has also introduced a new option to burn SHIB for its merchants, including other SHIBA partners like Wellys and John Richmond
How much have they burned till now?
As per the data, the Shiba Inu burn has reached a total of 410.309 trillion coins, which is around 41% of the total supply of the crypto coin SHIB. The maximum shiba inu burn achieved was 410.24 trillion in May 2021, which was achieved by Vitalik Buterin’s initial burn. It was done after he received 500 trillion SHIB tokens when the coin was first launched. The remaining SHIB was later donated to charity. If we remove that part of the Shiba Inu burn, then the company has been able to burn more than 67 billion SHIB coins till now, with a value of around $1.81 million until April 5, 2022. The company is now looking for an automated ecosystem process that will be able to turn 111 trillion coins automatically every year, which would help them to maintain proper circulation and demand for the coins, further maintaining their value.
What should investors in this cryptocurrency do?
The burning process is seen to be a positive move in the cryptocurrency market, and the Shiba Inu coin burn schedule has been highly appreciated by investors and other companies as well. As an investor, it would be a great opportunity to buy the SHIB coins, as it would mean that the gradual process of burning would reduce the number of coins in the market, leading to a shortage. It eventually would increase the price of the coins and would be a great way to get returns for investors. Therefore, it is suggested that it will be the right time for investors to invest in SHIB as the Shiba Inu coin burn rate continues to increase and will be even higher with new methods in the future.
Verdict
The Shiba Inu coin burn today will be a profit for investors tomorrow and will maintain a great value for people who hold this cryptocurrency. If you are looking to invest in SHIB, then it would be a great time to do that. Also, it is expected to give a better return in the long term as well. The entire process has brought a positive outlook for Shiba Inu and is something that other crypto companies are also adopting.
FAQs
1. Will burning Shiba coins increase their value?
Burning tokens helps to maintain a stable and predictable inflation rate. It also helps to drive up demand.
2. How much SHIB is burned daily?
350% of the SHIB rate is burning daily.