Rocket Fuel For Shiba Inu Price: Kusama Says 99% SHIB Supply Burn Possible

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As a seasoned analyst with over two decades of market observation under my belt, I find Shytoshi Kusama’s vision to burn 99% of the circulating SHIB token supply both audacious and intriguing. The idea is reminiscent of the ancient Chinese tale where a man moved mountains not by brute strength, but with persistence and determination.

Shytoshi Kusama, the mastermind behind Shiba Inu‘s development, has fielded queries about an ambitious plan to destroy 99% of the existing SHIB tokens. To engage with the community, he encouraged questions for his podcast, asking, “What’s a topic or question you’d like me to address on my podcast? #shyspeaks.

Burning 99% Of Shiba Inu Tokens ‘Can Be Achieved’

This initial call for action paved the way for later talks about a possible token destruction method. Specifically, Fang Zhang, LSP Finance’s Chief Financial Officer, sought clarity on the practicality and planning involved in such a large-scale token burn by asking: “Could you provide details about the timeline and plan for burning 99% of the circulating SHIB Tokens?

In response to Zhang’s query, Kusama elucidated the difficulties and factors to take into account when contemplating the burning of 99% of SHIB tokens. He admitted that such an undertaking was historically unlikely, yet emphasized that with multiple projects collaborating towards this significant goal, it could indeed become a reality.

Kusama clarified the essential factors for achieving this result, underscoring the importance of numerous projects, especially those on a grand scale, adopting the Shiba Inu (SHIB) technology infrastructure. Essentially, he suggested that either many projects or a few significant ones should utilize the SHIB tech stack to make the burn process easier.

Kusama pointed out several key challenges in reaching the burn target. He noted that if the burning process gains speed, it might cause the SHIB price to rise as investors expect a surge, which makes burning more costly and thus slows the process. In simpler terms, he suggested that if the burn rate increases significantly, people may buy SHIB in anticipation of a price hike (or “mooning”). This would make burning SHIB more expensive, thereby slowing down the burning process.

As a dedicated crypto investor, I understand the significance of both the act and the purpose behind token burns. It’s not merely about the burning process, but more importantly, it’s about the underlying intention.

As an analyst, I concur with Kusama’s perspective. While token burns are undeniably significant for Shiba Inu’s success, they aren’t the only factor that will drive its growth. He emphasized the importance of creating utility for this memecoin. His words resonated when he said, “Burns aren’t the sole pathway to Shib’s victory. If I were to estimate, it would take an unspecified length of time, which might not be quick enough to deter skeptics. So, we need to explore other ways to endow utility to memecoins and reach a stage where people no longer wish to burn the token due to its growing value and popularity.

He stressed the importance of enhancing SHIB’s utility through mechanisms like staking and developing new use cases for associated tokens such as BONE, LEASH, and Treat.

Burning 99% of all Shiba Inu (SHIB) tokens would cause an extreme shortage, potentially leading to higher values for each remaining token if demand continues at the same level or increases. Such a move could elevate SHIB from its current position as a low-cost meme token towards becoming a more valuable asset.

Instead, Kusama explained that the burning process would progress gradually, fueled by the expansion of SHIB’s technology into numerous projects, which could take multiple years to fully implement, as opposed to a swift decrease in supply.

Currently, Shiba Inu (SHIB) is trying to surpass the 0.5 Fibonacci resistance point, which stands at approximately $0.00002823. This significant level is based on the high of March 5th at $0.00004567 and the low on August 5th at $0.00001067. In the immediate future, if SHIB manages to break through this 0.5 Fib level, it could potentially lead to a target at the 0.618 Fib level, or around $0.00003235.

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2024-11-25 21:40