The crypto world has been captivated by the burning ambitions of Shiba Inu (SHIB) and Terra Classic (LUNC), with both tokens implementing aggressive burn mechanisms to reduce their circulating supply and, consequently, boost their price. However, a computer engineer has poured cold water on the hopes of both communities reaching the coveted $0.01 price target.
Charu Bey, the engineer, recently took to X (formerly Twitter) to share his perspective on the burn strategies of both tokens. While acknowledging LUNC’s burning efforts, Bey expressed optimism about its potential to reach $0.01, stating, “It’s not a dream for LUNC.” The engineer attributed this optimism to the token’s significantly reduced circulating supply compared to SHIB.
In contrast, Bey painted a less rosy picture of Shiba Inu. Despite the meme coin’s ardent fanbase, the engineer noted that the burn mechanism has yielded minimal results, with a staggering 589 trillion SHIB tokens still in circulation. Bey’s assessment was echoed by the relatively subdued response from the SHIB community to the burning efforts, in stark contrast to the vocal and often frustrated LUNC community.
LUNC has benefited from the support of major exchanges like Binance, which has committed to burning a portion of LUNC trading fees. This additional burn mechanism has contributed significantly to the token’s supply reduction. Shiba Inu, on the other hand, has primarily relied on its layer-2 network, Shibarium, for burns, but intermittent network slowdowns have hampered the process.
The mathematics of reaching $0.01 for Shiba Inu are daunting. According to burn trackers, the token’s circulating supply would need to plummet by a staggering 78.52% to achieve this price point. Crypto YouTuber Jeff has previously labeled this target as virtually impossible, estimating that it would take over a million years to burn just 100 billion SHIB tokens at the current rate.
While the allure of a token price surge through burning remains enticing, the reality is that achieving a $0.01 price for both Shiba Inu and LUNC appears to be a formidable challenge. As the crypto market continues to evolve, investors and enthusiasts alike will be watching closely to see if these burning ambitions can be realized.
