Sketchy Shiba Inu Burn: Strange Wallet Burns 2M SHIB Tokens

shiba inu

Recently, a dubious burn transaction occurred amidst the frequent Shiba Inu burns that happen daily. Surprisingly, a wallet with only two transactions managed to burn a staggering 2 billion SHIB tokens.

According to data from Etherscan, the address received 2,005,265,274.5 SHIB tokens from Uniswap V3 exchange about 1 day and 21 hours ago. Shortly after, the wallet transferred and burned all the tokens to a dead wallet address.

Typically, token burns are initiated by known participants, stakeholders, and community members. That being said, the recent burn performed by an unknown wallet with just two transactions has raised suspicion. The significant amount of 2 billion tokens suggests that it’s unlikely to be an experiment, and may have been an attempt to manipulate SHIB’s price. However, this is purely speculative at this point.

It’s worth noting that the overall burn rate of SHIB has been decreasing. In the past 24 hours, the burn rate has decreased by 99.79%, with only 4.3 million SHIB tokens burned in that timeframe.

Read Also: Shiba Inu Retains Top Spot as No. 1 Memecoin in the US

Analysis of Shiba Inu’s Price Trend

When tokens are burned, they are removed from circulation, creating a more scarce asset and adding bullish pressure on the price over the long term. However, with the burn rate of Shiba Inu decreasing, the price has remained flat.

Since mid-April, SHIB has been trading within a narrow range around $0.00001. On Binance, transaction volume for SHIB remains low, indicating a cautious market. The macro volume trend for SHIB is also unappealing at the moment, and the dropping RSI suggests weak buying momentum, putting Shiba Inu in a precarious position.

Currently, SHIB is trading in the red, at $0.00000994, after a 1.48% decline over the past day.

Read Also: Shiba Inu Price Prediction for May 2023

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