Shiba Inu (SHIB): Should You Invest?
As the saying goes, every dog has his day. This is especially true of the Shiba Inu, a cryptorchid named after a Japanese dog breed. Since its debut in the crypto world, the coin has grown at an astonishing rate, garnering attention from investors and enthusiasts alike.
At the end of October 2021, the price of the Shiba Inu cryptocurrency increased by over 173% in just one week, and it fell almost as fast. While sharp price increases make it easier to get caught up in at the moment, it is important to know that cryptocurrencies, especially meme crypto, are a highly volatile investment.
Learn more about the Shiba Inu’s volatility, its future prospects and everything you need to know about its current price.
What is a Shiba Inu?
Shiba inu is an altcoin created in August 2020 by a pseudonymous entity named Ryoshi. Like many other cryptocurrencies, the name of the Shiba Inu was inspired by a breed of dog.
According to its white paper, known to the Shiba community as “Woof Paper,” the founders launched Shiba Inu on Ethereum because the blockchain is well established and secure.
The founder of Shiba Inu claims that half of the coin’s supply is locked in a liquidity pool on Uniswap, while the rest was sent to Ethereum co-founder Vitalik Buterin. The tokens were sent in the hope that Buterin would hold them.
But he burned most of them, removing them from circulation. He donated a substantial number of tokens to several charities including the India COVID-19 Relief Fund.
How much is a Shiba Inu coin worth?
As per coin market cap, the price of Shiba Inu crypto is $0.000008063. This represents a decrease of over 90% from its high of 0.00008 on October 28, 2021.
Currently, the coin has a market capitalization of $4,427,001,704 and ranks 17th on CoinMarketCap’s list of top cryptocurrencies.
Is this safe?
The security of any cryptocurrency depends on its structure and usefulness. Since Shib is an altcoin, it is community based. This means that the success of the coin largely depends on the development of the community. Utility has a lesser role in this regard.
In Shibb’s whitepaper, this is called an “experiment” for decentralized community building.
Even under the best of circumstances, you should only invest in crypto that you can afford to lose because all cryptocurrencies are risky investments. However, altcoins are particularly risky because they have structural, usage and supply gaps from bitcoin, and their investment potential is more speculative.
When bitcoin was launched, the intention behind it was to offer a peer-to-peer decentralized finance system. The founders carefully built the blockchain with the utility and structure of the ecosystem in mind. Furthermore, there is a limited supply of bitcoins. Thus, cryptocurrency has an inherent drawback. Because of these characteristics, bitcoin has the potential to become a widely accepted digital currency in the future.
But the same cannot be said for the Shiba Inu cryptocurrency. Thus, it is not a safe investment.
Where can I buy Shibs?
You can buy Shiba Inu on the project’s native exchange Shibaswap and on other exchanges like Binance.US, Coinbase, KuCoin and many more. Here are some ways to buy Shibs through Binance.US:
- Bank transfer: Wire money from your bank account and buy stable coins on Binance.US. You can then use these stable coins to buy Shiba Inu.
- Business: You can also trade your existing cryptocurrencies for Shibs on Binance.US.
- Credit Card: Binance.US lets you buy Shibs using your debit card or credit card, such as MasterCard or Visa.
If you live in a state where cryptocurrency laws are unfriendly, you can buy Shibs from a marketplace like KuCoin as part of a trading pair. In an example KuCoin gives on its website, you can buy Shibs through the Shib/USDT trading pair and then exchange your USDT for Shibs.
You can also use the Atomic Wallet app to buy Shibs using a credit card.
Is this a good investment?
Much of the Shiba Inu’s popularity is based on publicity. According to Nasdaq, the fear of missing out is taxing investors emotionally. As you see others making money from Shib, you might be tempted to invest in it too.
Headlines associated with the Shiba Inu can promote the coin, even if it is only temporarily. And whether it is justified or not. A Benzinga article, for example, put forward a rumor — and it is strictly rumored — that Elon Musk may have had a hand in the development of the Shib.
Not rumored, a Porch dealership in Baltimore has started accepting Shibs, among other cryptocurrencies, as payment for their cars. However, the 2022 Cayenne SUV will set you back around 3.8 billion Shibs, which is about 7% of all Shib coins currently in circulation.
More likely to have a real impact on Shibb’s value is its new listing on Robinhood, which gives it wider exposure to investors. In addition, the Shiba Inu Metaverse project is nearing completion and will offer a public land sale following a 10-day bid-and-holder event, U.Today reported. The sale will allow users to mine over 100,000 lots which they can then use to generate income.
That said, for most investors, the risk-reward profile of large altcoins such as Ethereum, Bitcoin and Cardano has been more viable than that of the Shiba Inu. If you want to buy some coins for fun, go ahead. But you should not invest heavily in Shib as its value in future may be very less, if anything.
Remember how much the Shiba Inu dropped in price last time. While regular market volatility played a role in this decline, the decline is being attributed to a mysterious billionaire.
An anonymous person bought 70 trillion Shib coins for $8,000 last August. When the currency was at its peak, the coins were worth $6 billion. However, this man started moving his over 40 trillion assets to four crypto addresses.
Therefore, it is estimated that trillions of Shiba Inu may return to the market. But that’s not the only concern experts have about the Shib. Fearing that the anonymous billionaire may soon sell his wealth, other merchants may sell their coins, even if the said billionaire does nothing.
In any case, there will be a huge influx of Shibs into the market, which will exacerbate the current bear market.
It is also important to note that the Shiba Inu has no intrinsic value. This may sound pricey given the market cap, but its value is entertainment-based only. Keeping this in mind it would not be wise to invest too much of your money in Shib. Shiba Inu crypto can help you make money quickly, but it is not a reliable long term investment.
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The fear of missing out on a marginal increase in prices, or FOMO, makes investing attractive. Although the Shiba Inu has made some people quite wealthy, it can also cause significant damage in the future depending on the sentiment of the community and the market. Invest wisely and choose coins that have intrinsic value and utility.
Daria Uhlig contributed reporting to this article.
This article has been updated with additional reporting since its original publication. The information is accurate as of June 20, 2022.
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