Shiba Inu burn rate plummets with Ryoshi disappearance, SHIB could crash like Terra’s LUNA
- Only 54.6 million Shiba Inu tokens were burnt in the past 24 hours as the burn rate of the Dogecoin-killer took a hit.
- The disappearance of Ryoshi, founder of Shiba Inu, fueled a bearish sentiment among meme coin holders.
- Experts believe Shiba Inu could go bust, similar to Terraform Labs' sister tokens LUNA (now LUNC) and UST.
Shiba-Inu-themed meme coin's burn rate took a hit after the mysterious disappearance of SHIB founder Ryoshi. Experts at Finder believe that Shiba Inu could crash like Terra, as the project lacks usability.
Also read: What will happen to Shiba Inu price after founder Ryoshi steps down
Shiba Inu price nosedives with Ryoshi's disappearance
Ryoshi, Shiba Inu's anonymous founder, has disappeared from all social media platforms, causing a stir among SHIB holders and the community. Ryoshi has deleted his tweets as speculations run rampant, wiping out his entire online presence.
After Ryoshi stepped away from the Shiba Inu community, project leader and developer Shytoshi Kusama stepped up and stated that the team will carry on and
...[ ]actualize Ryoshi's vision and plan for this grand experiment.
54.6 million Shiba Inu tokens burnt overnight
The burn rate of the Shiba-Inu-themed meme coin took a hit after the turn of events on May 29. In the last 24 hours, merely 54.6 million SHIB tokens were burnt. The burn rate has dropped by 64.2% overnight.
Shiba Inu burn rate
A drop in burn rate is associated with a slow reduction of the token's circulating supply, delaying the bullish impact of shrinking SHIB circulation on its price. 410.46 trillion Shiba Inu tokens have been burnt so far, effectively reducing SHIB supply considerably.
Experts at Finder believe Shiba Inu could face same fate as Terra
According to a report by cryptocurrency experts at Finder, a comparison website, Shiba Inu could crash, similar to Terraform Labs' LUNA (now Luna Classic-LUNC) and TerraUSD (UST). The report featured the opinions of 36 cryptocurrency experts and was initially published in May 2022.
Among meme coins in the crypto ecosystem, Shiba Inu is one of the hardest-hit cryptocurrencies, and experts believe there are several threats surrounding the Dogecoin-killer.
According to crypto experts, Shiba Inu is in the same category as LUNA, and the project has no real use cases. The lack of usability implies Shiba Inu relies on hype and not its real product. While Shiba Inu does not feature a stablecoin in its project, unlike Terra with its algorithmic stablecoin UST, there is one under-development.
Shiba Inu's stablecoin will be pegged to $0.01, unlike UST's $1 peg. Founder Ryoshi believed that this would make Shiba Inu's stablecoin more stable than algorithmic stablecoins in the ecosystem. The project is currently "nearing completion," and details on how the peg will be maintained are yet to be released.
Shiba Inu price eyes $0.000014 target
Analysts at FXStreet have evaluated the Shiba Inu price trend and set a bullish $0.000014 target for the meme coin. Analysts note that there is a lack of liquidity in Shiba Inu, when compared to altcoins in the crypto ecosystem, and the upside is capped at $0.0000128. However, a climb to $0.000014 is likely if the Shiba Inu price sustained its uptrend.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
