Sheba Cryptocurrency: Worthy Investment Or Risky Business?

The cryptocurrency Shiba Inu (SHIB) has been dubbed the Dogecoin killer by its supporters. It is an Ethereum-based ERC-20 token, inspired by the Shiba Inu dog breed. While some analysts consider the Shiba Inu coin to be a good investment, others warn of its extreme volatility and lack of real-world utility. So, is Shiba Inu a good investment? Let's explore the pros and cons.

Shiba Inu's value is based on hype and can be extremely volatile

Shiba Inu is a highly volatile cryptocurrency. Its value is based on hype and can be extremely unpredictable.

Shiba Inu's value is driven by its unique ecosystem, the active participation of the Shiba Inu community, and speculation by investors. The Shiba Inu developers are working to make their coin more useful, such as by launching a decentralised crypto exchange. However, the value of Shiba Inu is largely based on hype and can be extremely volatile. For example, the Shiba Inu rate started its way in the cryptocurrency market with a meagre coin value of $6.13E-8. The minimum price of Shiba Inu was fixed in March 2021 at $4.01E-8. At that time, few people wanted to buy the coin, and all the most interesting things in its history were yet to come.

Shiba Inu's price can also be influenced by social media hype, which has largely determined the massive buying and selling of the meme coin. If the team continues to create such hype around its product, this could become a powerful fundamental factor for rapid growth.

Shiba Inu's value is also influenced by its positioning as a "Dogecoin killer". Shiba Inu has followed Dogecoin's winning meme-friendly branding recipe. Throughout its spectacular run, Shiba Inu has been trending on social media, and its brand has been spreading like wildfire. Without a significant technological advantage at this point, Shiba Inu may thrive or die in the long term, largely based on the strength of its brand.

Shiba Inu's value is also influenced by its association with Vitalik Buterin, the creator of Ethereum. When Ryoshi created Shiba Inu, they sent half of the token supply to Buterin. This led to a bullish trend for the meme token, and in four days, the rate of Shiba Inu increased by 25 times. However, when Buterin donated and burned most of his tokens in May 2021, the price of Shiba Inu tanked. This demonstrates the extreme volatility of Shiba Inu's value, which is largely based on hype and can be influenced by the actions of a single investor.

Shiba Inu's extreme volatility can be a thrill for investors, but it also comes with significant risks. When any investment skyrockets by this much in less than a year, investors are thrilled. Unfortunately, volatility swings in both directions. The potential for the crypto's price to crash as hard as it skyrocketed is ever-present, and a pullback could snowball quickly, potentially crushing long-term investors.

It has a lack of real-world utility

One of the main drawbacks of the Shiba Inu cryptocurrency is its lack of real-world utility. It has very limited acceptance as a form of payment, with only about 100 global vendors accepting it, and these are mostly obscure, cryptocurrency-themed businesses. This is in stark contrast to other cryptocurrencies like Bitcoin and Ethereum, which have a much wider range of real-world applications.

Shiba Inu's lack of real-world utility is a significant concern for investors, as it means that the value of the currency is largely based on hype and speculation rather than any intrinsic value or practical use. This makes it a highly volatile and risky investment, as its price can fluctuate drastically based on news, social media trends, and changes in market sentiment.

The extreme volatility of Shiba Inu can be thrilling for investors, but it also comes with a high risk of loss. The average holding period for Shiba Inu investors is just 13 days, according to Coinbase. If market speculators and momentum traders were to suddenly abandon ship, a rapid pullback could occur, potentially leading to significant losses for long-term investors.

The lack of real-world utility also means that Shiba Inu's success is heavily dependent on its marketing and the loyalty of its community of supporters. Without a significant technological advantage, the long-term survival of Shiba Inu may depend largely on the strength of its brand and its ability to maintain a dedicated user base.

While Shiba Inu has gained attention due to its dog-inspired branding and association with the Doge meme, this may not be enough to sustain its value in the long term. As a result, investors considering Shiba Inu should be aware of the risks associated with its lack of real-world utility and carefully evaluate their risk tolerance before investing.

It is a decentralised meme token

Shiba Inu is a decentralised meme token. It is a cryptocurrency inspired by the Shiba Inu dog breed, which is the same dog breed that is the symbol of the Dogecoin cryptocurrency. It was launched in August 2020 by a pseudonymous founder called Ryoshi, who dubbed it the "Dogecoin killer".

Shiba Inu is an ERC-20 token, which means it is created on and hosted by the Ethereum blockchain, rather than its own blockchain. Ryoshi decided to launch Shiba Inu on Ethereum because it is "already secure and well-established". There are currently almost 400 trillion SHIB tokens in circulation, with a max supply of one quadrillion tokens.

The Shiba Inu creators have developed an ecosystem of three coins: SHIB, LEASH, and BONE, as well as a decentralised exchange called ShibaSwap. This exchange allows users to dig (provide liquidity), bury (stake coins), fetch (retrieve tokens), and swap coins.

Shiba Inu has a passionate community of online supporters, and its brand has been spreading like wildfire. Its success is largely dependent on the success and growth of its community. The creators of the cryptocurrency are actively developing auxiliary projects that positively impact its value, such as the Bone platform management token and the Doge Killer (LEASH) token.

Shiba Inu is considered a risky investment due to its high volatility and lack of real-world utility. It is also important to note that the creator of Shiba Inu sent half of the token supply to Vitalik Buterin, the creator of Ethereum, which some interpreted as a marketing move. This led to a sharp drop in the price of Shiba Inu when Buterin donated and burned most of his holdings.

Despite the risks, some analysts consider Shiba Inu to be a good investment due to its risk tolerance and the overwhelming support from its community. The large and dedicated community has helped Shiba Inu rank among the top twenty digital currencies by market capitalisation.

It has a high supply of tokens

Shiba Inu is a cryptocurrency with a very high supply of tokens. There are a total of 1 quadrillion SHIB tokens, with 589 trillion in circulation as of 2024. This is in contrast to Bitcoin, which has a limited supply and is designed to have utility as a peer-to-peer financial system.

The high supply of Shiba Inu tokens is often cited as a concern by investors and analysts. Michael Burry, the "Big Short" investor, has criticised the large supply, suggesting that it limits potential price appreciation. The high supply of tokens means that there is a high probability of dilution, which can lead to a decrease in the value of the token over time.

The large supply of tokens also contributes to the extreme volatility of Shiba Inu. When an investment skyrockets in value, as Shiba Inu has done in the past, investors can be thrilled. However, volatility swings in both directions, and the potential for the crypto's price to crash is ever-present. The average holding period for Shiba Inu investors is just 13 days, according to Coinbase, so a sudden drop in price could lead to a rapid sell-off and a snowballing pullback.

Shiba Inu's high supply of tokens is also related to its lack of real-world utility. Unlike Bitcoin and Ethereum, which have use cases beyond cryptocurrency exchanges, Shiba Inu has little practical use outside of these exchanges. It is accepted as payment by only about 100 global vendors, according to Cryptwerk, and these vendors are largely obscure, cryptocurrency-themed businesses.

Despite these concerns, some analysts and investors consider Shiba Inu to be a good investment. The risk tolerance of investors, as well as the overwhelming support from the Shib Army community, have contributed to the coin's success. The large and dedicated community has also led to the development of auxiliary projects that positively impact the value of Shiba Inu, such as the decentralised cryptocurrency exchange Shibaswap.

In summary, while Shiba Inu's high supply of tokens has led to concerns about price dilution and extreme volatility, the coin has also benefited from a large and dedicated community that has driven the development of auxiliary projects.

It has a passionate community of online supporters

Shiba Inu has a passionate community of online supporters, who have been pressuring popular trading app Robinhood to add the cryptocurrency to its shortlist of tradeable options. A Change.org petition calling for this change has gained over 400,000 signatures. The financial incentive for Robinhood to add Shiba Inu trading may eventually prove too much to resist if the crypto's popularity continues to grow.

Shiba Inu's market capitalization is driven by its unique ecosystem, the active participation of the Shiba Inu community, and speculation by investors. The creators of the cryptocurrency are not resting on their laurels; they are developing auxiliary projects that positively affect the value of Shiba Inu. The first such project was the decentralised cryptocurrency exchange Shibaswap, which immediately attracted many crypto investors.

The Shib ecosystem includes several crypto and Web3 side projects: a decentralised exchange, two tokens from the developers of Shiba Inu, a collection of Shiboshi non-fungible tokens, and Shiba Eternity, a free-to-play collectible card game. All the above and future projects are combined into one SHIB metaverse, which is continuously expanding. But the main achievement of the developers is the launch of a second-level blockchain, which is typical for serious long-term projects. That is why the army of Shiba Inu fans is showing multiple growth, and investments in the project are increasingly being made not by meme lovers, but by serious crypto investors.

The Shiba Inu community is so dedicated and large that, thanks to them, Shib is ranked among the top twenty digital currencies by market capitalisation. The creators of the cryptocurrency have created an ecosystem of three coins, known as SHIB, LEASH, and BONE, and a decentralised exchange called ShibaSwap. The team behind the tokens has also created a decentralised exchange that allows users to "dig" (provide liquidity), "bury" (stake coins), "fetch" (retrieve tokens from Uniswap or SushiSwap), and swap coins.

Shiba Inu supporters argue that its ecosystem, which includes smart contract capabilities, NFTs, and opportunities for liquidity mining, offers utility beyond community.

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