WallStreetBets Founder Says Shiba Inu Burned Enough Tokens to Prove Scarcity Still Sells

Founder of WallStreetBets, Jamie Rogozinski, recently commented on the spike in Shiba Inu burn, noting it propelled SHIB to a seven-week high. 

According to Rogozinski, Shiba Inu’s latest burn was so massive it would thrill anyone who enjoys setting things on fire. He claimed that the latest burn resulted in a 3% price surge, ultimately taking SHIB to its highest level in seven weeks.

In his view, nothing can be compared to deflationary tokenomics, which transforms FOMO (Fear of Missing Out) into “burn baby burn” mania, capturing the community’s reaction to massive token incineration.

He also suggested that this deflationary tokenomics reinforces the narrative that scarcity still sells. This indicates that news of a massive burn or supply reduction tends to drive demand for the related token, propelling the price to higher levels.

For context, this trend was observed in 2021 after Ethereum co-founder Vitalik Buterin burned a significant amount of Shiba Inu tokens.

In May 2021, Buterin sent more than 410 trillion SHIB to the dead wallet, permanently removing the tokens from circulation. The burn attracted investors’ attention to SHIB and helped propel it to an all-time high of $0.00008845 in October 2021.

Shiba Inu Burn Rate Soars 16,855% in 24 Hours

Rogozinski’s commentary coincided with a surge in Shiba Inu’s burn rate. As of yesterday morning, Shiba Inu’s burn rate was down 67.66% from the previous week, with only 35.98 million tokens removed from circulation. However, it spiked to 478.9% a few hours later, thanks to the incineration of over 636.68 million tokens.

This comes after an unknown Coinbase user sent 600.7 million Shiba Inu tokens to the official burn wallet yesterday. The user withdrew the Shiba Inu tokens from Coinbase to an unlabeled blockchain wallet and burned them almost immediately.

Data from Shibburn shows that a total of 602,070,033 (602.07 million) SHIB tokens have been removed from circulation over the past 24 hours, representing a 16,855% increase in daily burn rate. Notably, 616.4 million SHIB were burned over the past week, marking a 369.03% increase.

Price Lags

Despite the surge in Shiba Inu’s burn rate, the token’s price has slumped 6.15% in the past day to $0.00001333. Moreover, SHIB also plummeted 10.22% over the past week.

Shiba Inu’s recent dip coincided with a broader market downturn, which has negatively impacted the prices of major cryptocurrencies like Ethereum and XRP. For context, while Ethereum’s price has plunged 3.14% over the past day, XRP is down 4.65%.

Shiba Inu Supply Remains Largely Unchanged

Previously, the WallStreetBets founder commented on Shiba Inu’s ongoing burn campaign. He pointed out that despite the large-scale incineration of SHIB tokens, the total supply has remained largely unchanged.

As of April, when Rogozinski made his remarks, Shiba Inu’s supply stood at 589.25 trillion tokens, with approximately 410.75 trillion permanently removed through burning. Currently, the supply is 589.24 trillion, representing a minor decrease of just 0.001%.