It is common knowledge that over the long run, the S&P 500 grows by about 10% year on average. Early investment and consistent savings growth can contribute to long-term wealth creation. On the other side, cryptocurrencies have made billionaires quite quickly. The two most well-known and advanced cryptocurrencies are Bitcoin and Ethereum, but there are other lesser-known ones that have produced extraordinary gains.
One such token is called Shiba Inu (CRYPTO: SHIB). If you had the guts to put $100 into SHIB coin at the time of its launch in August 2020, your investment would be worth a staggering $5.9 million right now. That’s a decent return for a period of less than 18 months!
Read on to discover more about what might happen if I invested $100 in Shibas.
The Shiba Inu roller coaster
Shiba Inu was developed by an unidentified developer named Ryoshi, and during the less than two-year span of its existence, there have been a few significant upswings. 50% of the initial 1 quadrillion token supply were sent to Vitalik Buterin in an effort to establish widespread reputation within the cryptocurrency ecosystem.
Up until the spring 2021 meme-stock boom, Shiba Inu remained unnoticed, but its value soon increased. Then, Buterin gave away a portion of his assets to aid India in its fight against the pandemic. This deed increased awareness of Shiba Inus.
However, Shiba Inu remained comparatively level until the beginning of October, when another wild bull run began, after dropping sharply in the middle of May. Elon Musk, the CEO of Tesla, encouraged interest in the coin through tweets. Even the movie theater chain AMC Entertainment Holdings said in November that it will soon start taking payments in Shiba Inu. But since then, the token has collapsed. With a $16 billion market cap, Shiba Inu is now the 14th largest cryptocurrency.
Shiba Inu has no advantages
Shiba Inu has more features than its competitor Dogecoin, which operates on a blockchain designed only for payments and is built on top of the Ethereum network. ShibaSwap, a decentralized exchange founded by the Shiba Inu community, enables SHIB holders to stake their holdings and get incentives. This promotes the loyalty of investors. The group also intends to create Doggy DAO, a platform for non-fungible tokens (NFTs).
Although these initiatives are supposed to increase Shiba Inu usefulness, which should eventually support higher SHIB pricing, I’m dubious. There are currently 16,763 different cryptocurrencies in use, and more are always being developed. Shiba Inu lacks any competitive advantage that might even remotely increase its odds of long-term survival. Compared to what the Shiba Inu community is working on, UniSwap, a decentralized exchange, and OpenSea, an NFT marketplace, are more developed and exhibit greater promise.
Shiba Inu’s price varies based on various social media hype cycles, just like other meme tokens. Recent speculations, such as those about its prospective inclusion on the Robinhood Markets app, may also cause a brief price spike. These occurrences are obviously unpredictable, and investing in them is more comparable to gambling than anything else.
Shiba Inu is one of many intriguing tales in the cryptosphere, but it’s best to avoid it.