What Is Shiba Inu And Can I Still Invest?

If someone had told you that one of the top 10 cryptocurrencies in terms of market cap only started in August 2020, you would probably think that crypto is doing something revolutionary.

But altcoin Shiba Inu (SHIB) is anything but revolutionary. With a maximum supply of tokens of one quadrillion and over 500 trillion SHIB tokens in circulation, the price of SHIB doesn’t even come close to a cent. And while Shiba Inu is built on the Ethereum blockchain, it’s hard to envision dog-themed SHIB as the decentralized cryptocurrency of the future.

However, this altcoin has risen over 5,000,000% in value since its inception and has left many investors wondering: is Shiba Inu a good investment? To understand whether you should invest in SHIB or not, you need to understand the history of the altcoin, why the price has skyrocketed and the investment risks. We explain that and more below.

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What is the Shiba Inu (SHIB) Coin?

In August 2020, anonymous individual “Ryoshi” created the Shiba Inu (SHIB) coin, naming the cryptocurrency after the Japanese dog breed Shiba Inu.

This is not the first dog-inspired cryptocurrency. Since meme coin Dogecoin started in 2013, there have been a slew of similar dog coins, including those from Floki Inu and Kishu Inu† However, SHIB is one of the most valuable of all these cryptocurrencies and is commonly referred to as the “Dogecoin killer” due to its aim to beat Dogecoin in terms of market cap.

And, when you visit the Shiba Token Website, the project certainly looks serious. For starters, SHIB is an ERC-20 token, which is the default token used on the Ethereum blockchain. Shiba Inu’s website also states that it is “a decentralized meme token that has evolved into a vibrant ecosystem.”

There is even a white paperaptly called a WoofPaper, where Ryoshi explains the importance of: decentralized finance (DeFi) and why Shiba Inu and his community are so powerful.

What is ShibaSwap?

In July 2021, the Shiba Inu community was launched ShibaSwap, a decentralized cryptocurrency exchange where people can trade SHIB. The platform has also created two community subtokens: Bone and Leash.

Bone tokens are for governance, so Bone holders can vote on future changes to SHIB. Leash tokens, on the other hand, are a second token in the Shiba Inu ecosystem with a stock just north of 100,000 tokens.

These new tokens relate to various ShibaSwap features that allow people to capitalize on stakeholder interest. For example, ShibaSwap users can “bury” SHIB, Bone and Leash tokens to earn interest. This is similar to cryptocurrency staking and high-yield interest accounts like you get with BlockFi or Celsius.

Members can also “dig” on ShibaSwap, which basically means depositing cryptocurrency to increase the exchange’s liquidity. In exchange for digging, you will receive Bone Tokens as a reward. Shiba Inu is even launching a marketplace for NFTs where you can browse a collection of over 10,000 Shiboshis, the community’s own NFTs.

The NFT marketplace is a more recent development that is still gaining a foothold. Furthermore, while its own decentralized exchange, staking and liquidity pools and governance tokens may look legit at first glance, many still consider SHIB to be nothing more than a meme.

A History of Shiba Inu – What’s Behind the Recent Price Rise?

Despite its detractors, Shiba Inu is one of the most valuable cryptocurrencies by market cap. So this increase in value begs the question, “Why has Shiba Inu become so valuable?”

First of all, SHIB was definitely launched at the right time. At the beginning of 2021, a series of Tweets from Elon Musk referring to Dogecoin or mentioning the altcoin immediately saw a spike in the value of Dogecoin. Musk continued this pattern of tweeting leading up to his appearance on SNL in May. The social media hype saw the price of Dogecoin soar until the show actually aired, during which time Musk called Dogecoin a ‘hustle’ causing the price of Dogecoin to fall.

That’s the Dogecoin story. But like many other altcoins, Shiba Inu took advantage of the excitement over Dogecoin and also surged more than 5,000% in five days according to CoinDesk

The media attention didn’t stop there. Ryoshi, the founder of Shiba Inu, sent half of Shiba’s token supply to Vitalik Buterin, the founder of Ethereum. However, Buterin burned most of his SHIB property a few days later, he stated he didn’t want that much power over SHIB’s circulating stock. Buterin also donated over a billion dollars in SHIB tokens to India’s Covid-19 Crypto Relief Fund.

Buterin’s actions caused SHIB’s price to drop and the altcoin fluctuated between $0.000006 and $0.000009 over the next few months.

During this time, it seemed as if Shiba Inu’s fate was sealed. But when Coinbase, a leading cryptocurrency exchange, announced his support for SHIB on its platform in September, prices started to rise again. The general rally of Bitcoin and crypto during this time also created the perfect bullish scenario for the price of Shiba Inu to rise.

And, unsurprisingly, yet another catalyst came from Elon Musk. On October 3, 2021, Tweet from Musk his new Shiba Inu dog made prices skyrocket.

When a Change.org petition to mention SHIB on Robinhood went viral and amassed over 400,000 signatures, Shiba Inu hit its highest award in history. And with Cryptocurrency Whales Are Now Depositing Millions Of Dollars Into Shiba Inuthe price has continued to rise.

Should You Invest in Shiba Inu?

The fear of missing out, or FOMO, is a common emotion investors can experience with cryptocurrency. After all, when you hear that investors are putting? Making $8,000 in Shiba Inu and $5.7 Billionit’s easy to feel like you’re missing out on the next gold rush by sitting on the sidelines.

However, as with any alternative investment, you need to understand the risks and potential benefits of investing. For something as volatile as SHIB, this is even more important.

So, should you invest in Shiba Inu? And how can you decide if this altcoin is right for you? Well, if you’re looking to invest in SHIB because you believe in the future of decentralized finance, you’re probably barking at the wrong tree.

Shiba Inu is built on the Ethereum blockchain. But despite having its own exchange, SHIB isn’t paving the way for DeFi. Ethereum is, of course, the frontrunner in decentralized finance. In addition, there are other cryptocurrency projects that have a clearer practicality than Shiba Inu, such as Cardano and Solana.

In addition, Shiba Inu’s token supply is a concern for some and has been a point of criticism from Wall Street professionals such as “The Big Short” investor. Michael Burry. But even if you sign up for SHIB’s future in DeFi and are not concerned about the supply of tokens, volatility is a significant risk.

As we have seen, a single Tweet or celebrity endorsement can make the price of Shiba Inu go up or down. Further, according to Coinbase data, the average wait time for SHIB is only 14 days; hardly a signal that this is a buy-and-hold cryptocurrency.

The bottom line is this: right now, Shibu is only a game for speculative, short-term traders. Unlike other coins like Bitcoin, there are no fundamental reasons to invest in Shiba Inu. So never spend money that you can’t afford to lose.

Will SHIB reach $1? 0.01? – Future price predictions and alerts

One of the reasons many investors flock to altcoins like SHIB is because it is so cheap. On paper, this sounds like an easier way to get rich than investing in more expensive cryptocurrencies. After all, if you buy a million SHIB for less than $100 and the price reaches $1, you’ve just become a millionaire.

Shiba Inu promoters and people who want to pump and dump their tokens are unfortunate proponents of this mindset. There are many SHIB price predictions and targets, with people asking if SHIB can reach a cent or a dollar.

These Shiba Inu price predictions are where you run into the problem of SHIB’s token supply. With over 500 trillion tokens currently in circulation, if Shiba Inu reaches $0.01, that will be over $5 trillion in market cap. For context, the total value of the US economy is about $21 trillion according to The World Bank† Therefore, SHIB reaching a cent is practically impossible at the current token numbers.

Honestly, the developers of Shiba Inu are coming up with ways to put the total number into circulation. As mentioned, holders can bury SHIB tokens with ShibaSwap, which will take tokens out of circulation for a period of time. The new NFT marketplace also has a burning mechanism where SHIB tokens are burned when people buy and name their Shiboshis.

But even with these actions, there are simply too many SHIBs in circulation to reach a cent, let alone a dollar. If a huge amount of tokens were burned or if everyone bought Shiba Inu, the price could potentially rise much higher than the current level. But from a simple supply and demand perspective, it is nearly impossible for SHIB to reach $0.01 or above.

All of this means you have to be very wary of SHIB price predictions touting such high numbers. Simple math can usually tell you whether a price prediction for an altcoin is based on reality or not. So always do your due diligence.

How to buy SHIB

If you want to invest in Shiba Inu or swing on this volatile altcoin, you have several options.

One of the easiest methods to buy Shiba Inu is to open a Coinbase account and buy the crypto there. Coinbase is one of the most popular exchanges in the world. And you can link your bank account to your Coinbase account to buy SHIB with money from your bank.

Binance and Voyager, two other popular cryptocurrency exchanges, also let you buy and sell Shiba Inu, as well as dozens of other cryptocurrencies and stablecoins.

Does Shiba Inu Make Sense For You?

As mentioned, investing in Shiba Inu is currently similar to gambling. The average holding time of SHIB on Coinbase is 14 days. And the altcoin can experience massive price swings with just a single tweet or news.

If you want to invest in cryptocurrency, there are plenty of other more reliable options. For example, platforms like Linus and BlockFi allow you to earn passive income from your money and cryptocurrency. Alternatively, consider investing in cryptocurrencies with more history, such as Bitcoin and Ethereum.

Whatever you decide, understand your level of risk tolerance and how much of your investment portfolio you want to put in crypto. Altcoins like Shiba Inu can and have made millionaires. But if you’re not ready for a wild ride and have the potential to lose it all, this isn’t the right investment for you.

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