The Shiba Inu community has been actively burning the SHIB tokens over the past couple of months, in a bid to boost the dollar value of the cryptocurrency.
The burn initiative became effective after the community saw the impact of the trillions of SHIB tokens burned by the Ethereum founder, Vitalik Buterin, back in May 2021.
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According to Steven Cooper, the founder of Bigger Entertainment, who has been leading the burn initiative, the aim is to push the price of the meme token up to $0.01.
Although the SHIB burning has been consistent, it seems to have little or no impact on the price of the cryptocurrency, which brought about the newly unveiled strategy to push its price further to $0.1.
How Reverse Stock Split Strategy Could Aid Shiba Inu (SHIB) to $0.1 and Beyond
Reverse Stock Split Strategy was proposed by a popular investment journalist, Will Ashworth.
As suggested by the journalist, the Shiba Inu team should implement a crypto version of Reverse Split Stock, which has the potential to reduce its total supply by over 50% and clearly better than the current burn initiative.
In finance, a reverse stock split or reverse split is a process by which shares of corporate stock are effectively merged to form a smaller number of proportionally more valuable shares.
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Ashworth suggested that the Shiba Inu team could merge the existing supply into fewer units, which would be more valuable.
The journalist said the team could adopt a ratio 1 to 10 (1:10) reverse split, in which 1 unit of the new SHIB token will replace every 10 old SHIB token. The strategy, if implemented, is expected to reduce the total supply of the cryptocurrency better than the current burn initiative.
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