Shiba Inu Burn Soars, But Investors Warned to Stay Cautious

A recent Shiba Inu (SHIB) burn of $100,000 worth of SHIB tokens led to a massive 252,910% spike in the burn rate, with 5.6 billion SHIB destroyed in the past 24 hours. Most of this was from a single transaction burning 5.5 billion tokens. While such significant burns are typically bullish, reducing token supply and potentially boosting price, the scam detection platform Susbarium has warned investors to be cautious.

Susbarium advised the Shiba Inu community to carefully examine the motivations behind large burns. The platform highlighted that some projects use massive burns to lure in SHIB investors, often promoting presales or tokens with questionable quality. According to Susbarium, this tactic has been used before, and it’s important for investors to look beyond the hype.

To protect themselves, Susbarium recommended that investors “do your own research (DYOR)” before jumping into such projects. This includes checking the team’s credentials, the roadmap, and whether the token has genuine utility. Additionally, investors should examine the token’s distribution—especially how much is allocated to the team or insiders. High insider allocations can be a red flag, as they might indicate a setup designed to benefit insiders rather than the community.

Susbarium also suggested reviewing the token’s supply, liquidity, and overall structure, as balanced setups are often safer. Lastly, the platform warned against blindly trusting promotions by influencers. Large social media accounts rarely endorse projects without compensation, so investors should verify details independently before making any commitments.

Shiba Inu’s Marketing Lead, Lucie, acknowledged the burn, expressing surprise at the size of the transaction, as such large burns are not common. Lucie also supported Susbarium’s warning, sharing the post to alert the community. Similarly, Shiba Inu developer Kaal Dhairya backed the cautionary advice, noting his appreciation for Susbarium’s approach to investor protection. Susbarium also recently alerted the community about scammers promoting fake “TREAT” tokens, clarifying that no official token has been released by the team yet.

For SHIB holders, these recent events underline the importance of careful evaluation before investing, especially with prominent burns and new tokens drawing attention.