World Crypto Global
- Written by: Abdulkarim Abdulwahab
- Mon, 24 Jul 2023
- United States
Shiba Inu burn tracker clarifies misconceptions about token burns’ impact on Shiba Inu price, emphasizing demand and uniform investments as key price drivers. In a recent tweet, Shibburn, a Shiba Inu burn tracker that automates transactions, raised a crucial point concerning token burns and their impact on Shiba Inu price movement. To clear up misconceptions […] The post Shibburn Clarifies Why Shiba Inu Burns Do Not Affect SHIB Price first appeared on The Crypto Basic.
Shibburn Clarifies Why Shiba Inu Burns Do Not Affect SHIB Price
Shiba Inu burn tracker clarifies misconceptions about token burns’ impact on Shiba Inu price, emphasizing demand and uniform investments as key price drivers.
In a recent tweet, Shibburn, a Shiba Inu burn tracker that automates transactions, raised a crucial point concerning token burns and their impact on Shiba Inu price movement. To clear up misconceptions surrounding burns and price, Shibburn addressed a common question it often encounters:
“Why isn’t the price moving after ‘massive’ burns?”
"It's burning, but price not moving!"
According to Shibburn, the answer is that burns alone cannot influence prices without uniform and substantial token investments. It noted burning as much as 10 billion a week would not create a substantial price impact when much larger token transfers happen regularly and prices remain stable.
Supply and Demand Is What Drive Prices Up
Shibburn stressed that token burns do not solely determine the price of a token. According to them, even if a token burns a substantial portion of its supply, its value ultimately relies on the principle of supply and demand.
“A token can burn 90% of its supply, but if there’s no demand for that token, then it holds no value,”
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