.png){kind=logo}
Shiba Inu is relatively one of the new coins that can serve as one of the best hedges for an investor's portfolio. It is one of the most popular meme tokens that has taken off recently. SHIB inspires dog-enthusiastic artists from around the world to foster what the creators refer to as the 'artistic Shiba movement,' bringing the Shiba community to the NFT market. The crypto rose by 24.34% in the last 24 hours and has bagged about 800% growth. This sort of outsized interest in SHIB is not uncommon. Several parabolic price rallies in a vast range of cryptocurrencies have been recorded in all these years. However, Shiba Inu's rise to prominence in such a short amount of time is most impressive.
Recently, the SHIB community has celebrated 1 million holders, creating a stir in the crypto market. Even though the 'Dogecoin killer' has a substantial amount of attention from the cryptocurrency community, there is a lot of controversy about its existence and what it would achieve in the future. Most controversies revolve around its value as a long-term investment.
In this article, we dive into the pros and cons of Shiba Inu to analyse the perks and drawbacks of investing in it.
SHIB is very cost-effective: Currently, SHIB's trading price is very cost-effective, attracting several crypto investors. The price of a crypto trading asset is highly essential as it plays a crucial role in helping the trader use the percentage change to track the gains depending on the number of coins purchased. Experts believe that at such a price, investors could see a 100% profit from SHIB in the future. It is relatively easier for SHIB to triple and quadruple in the short-term or long-term than other big cryptos like Bitcoin or Ethereum.
ShibaSwap: Shiba Inu developers have created the ShibaSwap decentralized exchange for the SHIB community to build its brand. Decentralized exchanges are peer-to-peer exchanges that allow users to trade cryptocurrencies without relying on any intermediaries. ShibaSwap users can stake their cryptos to generate better returns, just like interests paid on a savings account.
SHIB is an ERC-20 token: Several investors wonder if they should choose Shiba Inu against its rival meme coin Dogecoin, which gave rise to the maddening popularity of this crypto. But what differentiates SHIB from its rivals is its status as the ERC-20 token. This indicates that the crypto runs on the Ethereum blockchain. Additionally, Ether's proposal to move to the proof-of-stake protocol might also prove beneficial in this regard.
Possible Robinhood trading: Shiba Inu's passionate community of investors has been pressuring the popular trading app Robinhood to list the crypto to its shortlist of tradable cryptocurrencies. Investors have initiated petitions calling on Robinhood to support SHIB. The platform has not yet commented on this initiative but instead reported a US$30 million revenue from DOGE trading in the first quarter of 2021 after adding it to the list.
Musk Happens to be a Fan: There is no doubt about the impact that celebrities have on cryptocurrency trading. Last month, Shiba Inu saw a major boost in prices after Elon Musk tweeted pictures of his dog Floki. This surge continued since, pushing the SHIB token to all-time highs. Musk's support for this crypto is enough for speculators to understand its value.
Lack of Real-World Utility: Unlike Bitcoin and Ether, SHIB has virtually no use for investors outside of a cryptocurrency market. According to surveys, the crypto is accepted as a payment by approximately only 100 global vendors. There is also nothing distinct about SHIB's transaction fees, speed, or structure to make it more useful than other cryptos.
Extreme Volatility: SHIB's recent price rally also brings along extreme volatility. For investors, looking to invest in the SHIB token for an adrenaline rush must also accept the fact that its potential to fall as hard as it skyrocketed is also part of the deal. So, if the market speculators and momentum investors pull out of the market, the crypto could come crashing hard.
Not an Independent Blockchain: As mentioned above, the crypto is based on the Ethereum blockchain. This phenomenon has its perks but also has its cons. SHIB lacks innovation and its team is not trying to change its infrastructure anytime soon, so the crypto might stay as an ERC-20 token for now.
Not a First-Mover Meme Coin: Shiba Inu is definitely making waves in the crypto space, but the first that comes as another meme coin is Dogecoin. Even though SHIB was able to overthrow DOGE from its throne, the victory was quite short-lived. But it has the community's support to regain the lost crown.
Greater Risk, Lower Potential for Rewards:The demand and supply of a cryptocurrency are the reasons behind the popularity of a crypto. The problem with SHIB is that its record-breaking performance has made it tempting for anyone who whipped huge gains and lock in profits. If enough coins are put up for sale, then the increased supply will cause SHIB to dive.
Shiba Inu is by no means a sure or safe investment, but it has proved that it can surprise its investors with astonishing returns.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
