In an effort to increase the Shiba Inu price, the team, together with the SHIB community, have come up with several initiatives to reduce the total supply of SHIB tokens. Despite these concerted efforts that have led to the burning of nearly 259 billion SHIB tokens, the cryptocurrency is still a long way from USD 0.10.
A reverse stock split
Interestingly, several experts believe that the current burn mechanism to reduce the total stock is insufficient to really increase the value of the token.
Investigative reporter Will Ashworth has suggested the team should implement a “reverse stock split” for SHIB. In this way, the price of the token can rise much more strongly, according to Ashworth. According to Ashworth, using the reverse stock split strategy on Shiba Inu would reduce the total supply by more than 50%.
A reverse stock split is the merging of stocks, it is the opposite of a stock split. A reverse stock split reduces the volume of outstanding shares and increases the price per share.
The team behind the project can choose to divide the offer by ten. One new SHIB token will replace ten old SHIB tokens. This will drastically reduce the total supply of SHIB.
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The community is ready to reduce the supply of tokens
The Shiba Inu community has already made great efforts to increase the value of the tokens. The community does this by burning (destroying) SHIB tokens. The company Bigger Entertainment is one of the largest SHIB burners. The company has already destroyed more than 10 billion SHIB tokens through its own burn program.
In an effort to participate in the SHIB burn program, Bigger Entertainment called on members of the SHIBArmy to purchase tickets to some of its events. A percentage of the company’s profits are converted into SHIB and sent to a dead wallet. However, the massive destruction of tokens has not yet caused the Shiba Inu price to rise.
It didn’t help at all that Bigger Entertainment announced last week to stop burning SHIB tokens. However, Bigger Entertainment promised to develop a new SHIB burn strategy.
Now that SHIB’s burn program has been discontinued by Bigger Entertainment, the Shiba Inu team must develop better strategies to reduce SHIB’s overall offering.
So the conclusion is that only when the number of SHIB tokens decreases sharply, the price could ever rise to $0.10. This can be done by burning tokens, or by doing a reverse stock split.
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