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Reverse Stock Split Strategy Could Boost Shiba Inu (SHIB) Value Above $0.01.
In an effort to boost the value of Shiba Inu (SHIB), the project team, alongside the SHIBArmy, has embarked on several initiatives to reduce the total supply of the cryptocurrency.
Despite these collaborative efforts that have resulted in the burning of nearly 259 billion SHIBs, the cryptocurrency is still far from hitting $0.01.
New Strategy Proposes
Interestingly, several experts believe the current burning mechanism to reduce SHIB’s one quadrillion total supply is insufficient to bolster the cryptocurrency’s value.
Famous investment journalist Will Ashworth has suggested that the team behind Shiba Inu should implement a crypto version of reverse split stock for SHIB to push the token’s price to greater heights.
According to Ashworth, using the reverse stock split strategy on Shiba Inu would reduce its total supply by more than 50%.
A reverse stock split is a company’s initiative to reduce the number of outstanding shares.
Ashworth recommended that instead of the Shiba Inu team continuing to buy some units of SHIBs during a price dip, they should consolidate the existing 1 quadrillion SHIBs into fewer units, which will become more valuable.
The team behind the project can choose to use a one-for-ten (1:10) reverse split, where one unit of the new SHIB token will replace every ten old Shiba Inu cryptocurrency. The move, if implemented, will drastically reduce the total supply of SHIB.
SHIBArmy Poised to Reduce Token’s Total Supply
It is worth noting that the SHIBArmy has been committed to boosting SHIB value as they continue to throw their weight behind moves that will reduce Shiba Inu token supply.
Popular Shiba Inu enthusiast Bigger Entertainment has been at the forefront of SHIB burning programs, as the firm has burnt over 10 billion SHIBs through its own burning program.
In a bid to join the SHIB burning program, Bigger Entertainment called on members of the SHIBArmy to buy tickets to some of its events. A percentage of the company’s profit is converted to SHIB and sent to an inferno wallet.
The exercise sparked interest from members of the Shiba Inu community, and billions of SHIBs were subsequently sent to the wallet.
Unfortunately, the token’s value only received a slight boost at intervals when each burn announcement was made.
Things became worse last week when Bigger Entertainment announced that it would stop burning Shiba Inu via the sales of its concert tickets.
However, Bigger Entertainment promised to develop a new SHIB burning strategy soon.
With SHIB’s burning program halted by Bigger Entertainment, the Shiba Inu team must develop better strategies to reduce the total supply of SHIB.
A move to conduct a crypto version of the reverse stock split on SHIB and Shiba Inu’s commitment to creating a decentralized ecosystem further is only a matter of time before the SHIB token surges above $1.