Shibburn Team Clarifies Impact of Token Burns on $SHIB Price

Shibburn Team Clarifies Impact of Token Burns on $SHIB Price

July 24, 2023

The team behind Shibburn, the $SHIB burn tracker, recently addressed a common misconception about token burns and price movement. They explained that despite “massive” burns, the price of $SHIB may not see significant movement without continuous and substantial token purchases to match the current purchase rate.

The team clarified that the price of a token is not solely determined by burns. Even if a token burns 90% of its supply, if there’s no demand for that token, it holds no value. The key factors for price movement are supply and demand, a principle that has held true for centuries. If the demand for the token surges, and more people start buying it, the available supply reduces due to the burning process, creating scarcity. This increased demand and decreased supply can positively influence the token’s price.

The team also pointed out that the top 100 accounts (excluding the burn address) for $SHIB hold near 400T of the token’s supply, mostly by centralized exchanges. Price can still go up based on demand. If everyone holds the entire supply, and more people continue to buy, increasing the demand for the token, centralized exchanges will start looking to buy more, and the price goes higher.

The team emphasized that a token’s success doesn’t always mean reaching a specific price, like “$0.01.” Many have their own price goals and have already taken profits because today’s price was their price goal. They encouraged the community to actively participate or initiate something that contributes to the token, rather than waiting for others to take action.

The Shibburn team disagreed with those who claim that burning has no effect without understanding how it works. They likened burning to a whale buying a massive amount of the token’s supply, except this whale will never sell. Those tokens remain locked forever, which they believe will have an impact.

The team concluded by encouraging the community to not blindly believe claims like “it will take thousands of years to burn the supply and therefore it’s going nowhere” or that it needs to “burn the entire supply” for it to be successful. They reminded the community that $SHIB stands tall in the top 20 out of over 23,000 cryptocurrencies and that it’s still early days for SHIB. They believe that as long as SHIB remains active, retains community interest, and continues to be adopted, the potential for growth is limitless.

At the time of writing, $SHIB is trading at around $0.00000773, down 1.7% in the past 24-hour period.

Featured Image Credit: Photo / illustration by Alexas_Fotos via Pixabay

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