Surely you have heard of Shiba Inu, a cryptocurrency that managed to make some millionaires overnight. However, far from the hype that this can generate, investing in this asset is really a high-risk decision. Therefore, it is necessary to understand its origin as well as the reason behind its value, before determining how much money you want to spend on its purchase.
Shiba Inu (SHIB) is a meme token created by the developer “Ryoshi” within the Ethereum blockchain in 2020. It was born calling itself the “killer of Dogecoin”, another highly popular meme token with which they share the same avatar dog breed. Yes, in case you didn’t know, “ Doge” is a Shiba Inu. The difference is that one refers to the specific dog in the meme while the other refers to the breed as a whole.
Being a meme token or “meme coin”, this means that its existence does not really have a purpose. I mean, it was created for fun. For example, Bitcoin plans to be the alternative to the conventional financial system and, currently, you can already make day-to-day payments with it. Ether is the cryptocurrency of the Ethereum blockchain, on which a large number of digital projects are based.
Thus, serious cryptocurrencies have practical uses that influence value. Shiba Inu does not have it, so its price is determined mainly by pure speculation. This makes it extremely volatile, being able to increase or decrease its price unexpectedly for “unknown” reasons.
This, however, does not overshadow his great growth. At the time of writing this note, Coingecko registers an increase of 25,265% compared to a year ago. That means that if a year ago you had bought 100 dollars of Shiba Inu, today you would have 2,526,500 dollars: You would be a millionaire.
However, from its all-time high on October 27, 2021, to today, it has dropped 73.53%.
That means that if you had invested $1000 dollars that day, today, 6 months later, they would be worth $264.70. By that we mean its extreme volatility, you cannot predict what is going to happen. Still, the Shiba Inu has definitely established itself as a major cryptocurrency. To date, it ranks 15th among cryptocurrencies with the largest market capitalization, with a total value of more than 11 billion dollars.
The Shiba Inu Ecosystem
Despite its lack of practical utility, the Shiba Inu, as a project, has managed to become an ecosystem.
Currently, they have their own trading platform called ShibaSwap, which allows you to exchange cryptocurrencies and generate profits through different investment functions. To do this, Shiba Inu has created two more tokens that serve as a reward mechanism: Doge Killer (LEASH) and Bone (BONE). Of these two, Bone will in the future allow the “ShibArmy” (fans of the coin) to cast votes within a DAO of that ecosystem: Doggy DAO.
The important thing about this ecosystem is that little by little, the Shiba Inu begins to acquire certain usefulness. Although this has practically no influence at present, progressively, especially with initiatives such as Doggy DAO, this could change. That’s why it’s important for meme token projects to get this kind of perspective because it paves the way for them to become serious tokens.
Otherwise, they become unsustainable as long-term investments and may disappear at any time. In fact, many meme cryptocurrency projects can be a SCAM, and it is the most novice investors who usually fall for them.
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Remember: meme tokens are not an option for everyone.
If you want to put your money there, it will be essential that you DYOR (do your own research), so that you determine that the specific project really has some viability. If not, it will be to leave it to the purest chance. Maybe you will make big profits? Yes, but you could also lose everything.
So, if things go well, congratulations! If not, then nothing happens, after all, it was not important money. That yes, at least of Shiba Inu we can affirm that there is an important community behind, as well as the intention of being more than a meme.