Shiba Inu is a relatively new coin that can be an excellent hedge for an investor’s portfolio. It is one of the most recent meme tokens to gain popularity.
SHIB inspires dog-lover artists worldwide to foster what the creators refer to as the ‘artistic Shiba movement,’ bringing the Shiba community to the NFT market.
This level of enthusiasm for SHIB is not uncommon. Numerous parabolic price rallies in a diverse range of crypto currencies have been documented throughout these years. However, Shiba Inu’s meteoric rise to prominence in such a short period is truly remarkable.
Is Shiba Inu a Good Investment?
It is predictable that Shiba Inu can be a good investment as Shiba Inu has emerged as one of the most significant winners of the year 2021. It has risen from 0.000000000073 at the start of the year to $0.000033 now, representing an incredible 45,000,000 percent gain. To put it another way, a little more than $2 invested in Shiba Inu at the beginning of 2021 would be worth $1 million today.
The crypto token has been relegated to the bottom of the barrel recently. Since reaching its high point, the SHIB currency has lost 63 percent of its value as speculative interest in the token has waned.
Numerous factors are driving the rise in the price of Shiba Inu, including the fear of missing out, the addition of more cryptocurrency exchanges that list SHIB for trading, the launch of the Decentralised Exchange Shibaswap, a coin burn, and the anticipation surrounding future developments. Considering the above factors,
Shiba Inu Coin Pros
SHIB’s trading price is extremely cost-effective, attracting many cryptocurrency investors. The price of a crypto trading asset is critical because it enables the trader to track gains based on the number of coins purchased using the percentage change. Experts believe that at this price, investors could profit 100% in the future from SHIB.
Developers of Shiba Inu created the decentralized exchange ShibaSwap to help the SHIB community in building a brand.
Decentralized exchanges are basically peer-to-peer systems that allow users to trade cryptocurrencies without the need for a third party to intervene. They are becoming increasingly popular. ShibaSwap users can stake their cryptos to earn higher returns, similar to savings account interest.
3. SHIB is an Ethereum Based Token
Shiba Inu is frequently compared to Dogecoin, a rival meme coin responsible for Shiba Inus’s whirlwind popularity. However, what distinguishes SHIB from its competitors is its status as an ERC-20 token.
This indicates that the cryptocurrency is Ethereum-based. Ether’s proposal to switch to a proof-of-stake protocol could be advantageous in this regard.
4. Trading Opportunities with Robinhood
Shiba Inu’s passionate investor community has been lobbying popular trading app Robinhood to add the cryptocurrency to its shortlist of tradable cryptocurrencies.
Investors have petitioned Robinhood to support SHIB. As a result of the addition of DOGE to the platform, DOGE revenues reached US$30 million in the first quarter of 2021.
5. Support of Elon Musk
There is no doubt about celebrities’ influence on cryptocurrency trading. Shiba Inu prices skyrocketed last month after Elon Musk tweeted images of his dog Floki.
Since then, this surge has continued, pushing the SHIB token to new all-time highs. Musk’s endorsement of this cryptocurrency is sufficient for speculators to appreciate its value.
Shiba Inu Coin Cons
1. Absence of Utility in the Real World
Compared to Bitcoin and Ether, SHIB has little value outside of the cryptocurrency market. According to surveys, approximately 100 global vendors accept cryptocurrency as payment.
Additionally, there is nothing unique about SHIB’s transaction fees, speed, or structure that distinguishes it from other cryptos.
2. Fluctuating Market Conditions
SHIB’s recent price rally has also brought a high level of volatility with it. Investors seeking an adrenaline rush by investing in the SHIB token must also accept that it has the potential to fall as hard as it has risen.
As a result, if market speculators and momentum investors exit the market, the crypto market may come crashing down hard.
3. Not a Self-Contained Blockchain
As previously stated, the cryptocurrency is built on the Ethereum blockchain. This phenomenon has several advantages but also some disadvantages.
SHIB lacks innovation and its team has no plans to change its infrastructure anytime soon, the crypto may remain an ERC-20 token for the time being.
4. Not a Meme Coin for First-Movers
While the Shiba Inu is undoubtedly making waves in the cryptocurrency space, Dogecoin’s first coin comes to mind. SHIB’s victory over DOGE was brief, even though it dethroned the former.
5. Risk is Higher, Rewards are Lower
The demand and supply of a cryptocurrency are the factors that contribute to its popularity. The issue with SHIB is that its record-breaking performance has made it alluring for anyone looking to whip up massive profits and lock them in. Coins sold in sufficient quantities may cause SHIB’s price to plummet.
Shiba Inu had been a monster performer, accumulating a mind-boggling 47,300,000 percent so far this year and presenting a fortunate few with life-altering earnings.
Despite this, the tremendous volatility of the coin has resulted in profits that have vanished almost as rapidly as they have appeared.
Since Shiba’s value relies on reasons other than utility, such as the fear of missing out and social media momentum, the price variations are not uncommon.