The Shiba Inu (SHIB) community has been buzzing following recent claims made by Shytoshi Kusama, the lead developer of the popular memecoin. In a recent statement, Kusama noted that it is entirely possible to burn 99% of the circulating supply of SHIB but emphasized that there are more important price catalysts.
Kusama stated that burning 99% of SHIB seemed impossible a year ago, but with numerous projects uniting to tackle this monumental challenge, it is now within the realm of possibility.
Downsides of Increased Burn Drawbacks
In addition, the lead added a condition to the ambitious burn goal, noting that such a significant burn rate could only occur if more projects, or a few major ones, adopted the Shiba Inu ecosystem’s tech stack.
Meanwhile, the pseudonymous Shiba Inu lead pointed out that higher burn rates could affect the ecosystem. Kusama further noted that while burns increase, the price of SHIB could also rise.
Consequently, acquiring Shiba Inu could ultimately become too expensive, hindering the burn rates. The lead then stressed that burning SHIB isn’t the sole focus, highlighting that there are numerous other avenues for the Shiba Inu ecosystem to thrive.
While burning tokens can effectively impact a token’s value, it has its critics. Some argue that it is a speculative strategy that doesn’t guarantee long-term value growth, as it does not necessarily address the token’s adoption.
Means of Boosting Shiba Inu’s Price
Kusama also mentioned that promoting adoption is a more lasting approach to increasing Shiba Inu’s price and strengthening its ecosystem. The lead said that if the memecoin establishes a practical use case, the ecosystem will flourish to the point where users won’t need to burn their tokens.
Kusama had previously noted the crucial role of mainstream adoption for the Shiba Inu ecosystem. According to a report, the lead asserted that broader utility for Shiba Inu would drive up prices and attract major centralized exchanges to the ecosystem.
The lead pointed out that the Shiba Inu ecosystem introduced liquid staking and other innovative features based on the premise of adoption. He also emphasized that developing new use cases for Shiba Inu and other tokens within the ecosystem is just as crucial.
