The Shiba Inu (SHIB) community was buzzing recently when a whopping $100,000 worth of SHIB tokens were burned in a single transaction. This caused the burn rate to skyrocket by a massive 252,910%!
Why Investors Should Be Cautious
While a big burn usually means good news for a cryptocurrency’s price, a scam detection platform called Susbarium issued a warning to Shiba Inu investors. They explained that some projects use these large burns as a way to lure people in with presales or low-quality tokens.
Susbarium’s Advice
Susbarium emphasized the importance of doing your own research (DYOR) before investing. Here’s what they recommend:
- Go beyond the burn: Look into the team behind the project, their roadmap, and whether the token has a real purpose.
- Check the token distribution: A large portion of the token supply allocated to the team or insiders could be a red flag.
- Analyze the token’s structure: Look at the supply, liquidity, and how the token is set up. A balanced structure is usually a good sign.
- Be wary of promotions: Influencers and big accounts rarely promote things for free. So, if you see them hyping a project, be sure to verify the details before investing.
Shiba Inu Team’s Response
Shiba Inu’s Marketing Lead, Lucie, expressed surprise at the $100,000 burn, as it’s not something that happens every day. She also seemed to agree with Susbarium’s warning, sharing their post on social media.
Shiba Inu developer Kaal Dhairya also showed his support for Susbarium’s message, stating “Love this account.”
Susbarium recently warned the community about scammers promoting fake “TREAT” tokens, as there is no official token from the Shiba Inu team yet.
It’s important to remember that the cryptocurrency market is volatile and risky. Always do your own research and be cautious before investing in any project.
