Shiba Inu (SHIB), one of the largest meme coins in the cryptocurrency market, announced that it is ready to launch a token burn portal. The main goal behind this new project is to reduce the total supply of the token. This is something that could have a positive impact on the price of Shiba Inu and that could help it increase adoption.
Shiba Inu (SHIB) Could Launch a Token Burn Portal
In a recent Ask Me Anything (AMA) session, one of the leading team members of Shiba Inu called Archangel, explained that they are also working on a token burn portal. This would be integrated into the decentralized exchange that they have already developed. There will be a specific section on the exchange that would let users burn tokens and reduce the total supply of the virtual currency.
There have been several cryptocurrencies, including Shiba Inu, that were released with a large token supply. This has, clearly, had an impact on the long-term stability of the project and on the price of the virtual currency. A smaller supply means that the scarcity of the token could push its price higher in the long term.
During the AMA, Archangel explained about the new token burn portal and the token burning project:
“We want to make the burn rate grow with the utilization rate of the platform. So if you think about it, this is the kind of the new utility. It’s about getting the supply slowly reduced as you use the platform.”
Another thing that is worth taking into consideration is that they are not expecting to reach a burning rate of 90% of the total supply of the virtual currency. However, they could increase the pace at which they have been burning coins. As of today, over 41% of the total supply has been burned.
When Shiba Inu was released, $1 billion was donated to the COVID Crypto Relief Fund in India thanks to a donation made by Vitalik Buterin, co-founder of Ethereum (ETH), the second-largest cryptocurrency in the world. However, 410 trillion SHIB were removed from circulation.
According to data shared by Coingecko, Shiba Inu is now the 14th largest virtual currency in the world right after Dogecoin (DOGE). Shiba Inu has a market capitalization of $13.59 billion and a price per coin of $0.00002483. In the last 7 days, the virtual currency lost 12% of its value, one of the worst-performing coins among the top 100.