Shiba Inu Coin is perhaps the newest member in the world of cryptocurrency. The Etherum-based cryptocurrency started as a meme and is now a digital currency. With the Shiba Inu—a Japanese breed of hunting dog as its mascot, Shiba Inu Coin is a new altcoin, also considered an alternative to Dogecoin.
This development showcases the unexpected turns of the world of digital currency, as Shiba Inu Coin is a meme-inspired digital currency that started as a joke. However, it quickly captured the attention of investors. It is now being proudly pointed out as ‘the Dogecoin Killer’. But is Shiba Inu Coin a good investment?
Let’s take a look at what makes Shiba Inu unique, its potential advantages, and risks, and whether it’s worth considering for your portfolio.
Shiba Inu Coin aka SHIB is a cryptocurrency launched in 2020 by an anonymous group called the Ryoshi. Currently, it is being taken forward by Shytoshi Kusama. While this currency emerged as an experiment in decentralized community-building has since gained a massive following. Its large popularity is attributed to its playful branding and comparisons to Dogecoin, another meme-inspired cryptocurrency.
Named after the Shiba Inu dog breed, SHIB was designed to competite with Dogecoin. It’s often referred to as the “Dogecoin killer.” Like Dogecoin, Shiba Inu has no intrinsic value or specific use case at its core, but it has developed an engaging community and garnered support from notable figures like Elon Musk.
Shiba Inu Coin runs on the Ethereum blockchain and is classified as an ERC-20 token. This means it benefits from Ethereum’s robust security and smart contract capabilities. What sets SHIB apart is its huge supply – one quadrillion tokens were created at its launch. While this might seem like an overwhelming number, it was done intentionally to keep the price per token extremely low, encouraging smaller investors to buy large amounts.
A major part of the Shiba Inu ecosystem is the ‘ShibaSwap’ decentralized exchange, which allows users to trade SHIB and other tokens, stake their coins, and participate in liquidity pools. ShibaSwap has helped give the project some legitimacy beyond its meme origins. Additionally, the Shiba Inu project also includes LEASH and BONE, two other tokens designed to complement SHIB within its ecosystem.
Much of Shiba Inu Coin's early success was driven by its community, affectionately known as the “Shib Army.” Social media platforms like Reddit and Twitter played a huge role in creating buzz around cryptocurrency, and speculative interest fueled a rapid price increase in 2021.
A major catalyst for SHIB's rise came in May 2021 when half of its supply was gifted to Ethereum co-founder Vitalik Buterin. Buterin then donated a significant portion to the India Covid-Crypto Relief Fund and burned (destroyed) the remaining tokens, removing them from circulation. This event led to increased media coverage and further drove investor interest.
Despite the excitement surrounding it, SHIB’s price remains highly volatile, which is a crucial factor to consider for anyone thinking about investing.
● Community Support
The Shiba Inu community is one of the largest and most enthusiastic in the crypto world. This grassroots support has been key in driving SHIB’s popularity and its listing on major exchanges like Binance and Coinbase. In addition, the "Shib Army" is actively involved in developing the ecosystem, including the launch of ShibaSwap and future projects like Shibarium, a Layer 2 blockchain network.
● Low Barrier to Entry
SHIB’s price is incredibly low compared to other cryptocurrencies. At fractions of a cent, investors can buy millions or even billions of tokens for relatively little money. This makes it appealing to those looking to get into cryptocurrency without spending a large amount of capital upfront.
● Growing Ecosystem
The development of ShibaSwap and the introduction of new tokens like LEASH and BONE suggest that the Shiba Inu ecosystem could evolve beyond its meme origins. Plans for Shibarium and potential foray into NFTs (non-fungible tokens) could increase the utility of SHIB in the future.
● Lack of Fundamental Value
Like many meme coins, Shiba Inu lacks any intrinsic value or utility beyond speculation. It doesn't solve any real-world problems, nor does it have any distinct technological advantages over other cryptocurrencies. Investors are essentially betting on the continued growth of their community and the project’s ability to innovate.
● Extreme Volatility
Shiba Inu Coin is notoriously volatile. Its price can spike dramatically in a short amount of time, but it can also crash just as quickly. In May 2021, SHIB surged by over 2,000% in just a few weeks, only to lose nearly 40% of its value shortly after. This kind of volatility can be highly stressful for investors and isn’t suitable for those with a low tolerance for risk.
● Oversupply
The sheer number of SHIB tokens in circulation – one quadrillion at the start – is an issue. Even with the large burn conducted by Vitalik Buterin, the supply remains overwhelmingly large, which makes significant price appreciation more difficult without massive demand.
● Regulatory Uncertainty
Like all cryptocurrencies, Shiba Inu Coin faces potential regulatory scrutiny. Governments around the world are still determining how to handle crypto, and any unfavourable regulation could negatively affect SHIB’s value.
Shiba Inu Coin's investment appeal largely depends on your risk tolerance and investment goals. If you're looking for a fun, speculative asset and you can afford to lose your investment, SHIB might be worth considering. Its low price per token allows for purchasing large quantities with a relatively small amount of money, and its enthusiastic community and potential ecosystem growth could offer some upside.
However, SHIB should not be considered a safe or traditional investment by any means. It remains highly speculative, with no guaranteed returns. Its extreme volatility, lack of fundamental value, and oversupply mean that investing in SHIB carries a significant risk of loss.
Shiba Inu Coin has proven that meme coins can captivate the attention of the crypto world, and its community has managed to build some momentum behind the token. But as with any cryptocurrency, it’s crucial to approach SHIB with caution. While it has made some early investors wealthy, it remains a speculative asset with no guarantee of future success.
For those considering investing in Shiba Inu Coin, it’s essential to do thorough research, diversify your portfolio, and never invest more than you can afford to lose. Whether SHIB turns out to be a long-term success or fades into obscurity, its rise and continued popularity offers a fascinating glimpse into the world of decentralized finance and the power of community-driven projects.