The meme bitcoin, or currencies based on online memes, trends, or concepts that appeal to a small set of investors, is one of the most notable fads in cryptocurrency. The growth of altcoins such as the Shiba coin has sparked the creation of further meme currencies as investors have discovered enjoyment – and the occasional riches – in these alternative investments.
However, as Dogecoin surged over 7,000 per cent almost overnight, investors diverted their funds to other undervalued currencies in the hope of striking it big on the next success. In this article we will look into everything you need to be aware of about this Shiba coin.
April Update: Shiba Inu coin is now officially listed on Robinhood, and is experiencing upwards movements.
What exactly is a Shiba Inu Coin?
Shiba coin is an altcoin (alternative cryptocurrency to Bitcoin) created on the Ethereum blockchain and named after the Japanese hunting dog Shiba Inu. It is considered a Dogecoin alternative by its followers, dubbed the “SHIBArmy”.
This meme coin was introduced in August 2020 as an inside joke by the mysterious Ryoshi.
Since its establishment, it has amassed a massive following of people who adhere to the organization’s core principles.
- The project began at the beginning, with zero.
- Its purpose is to make something from nothing.
- Shiba coin was not formed by a pre-assembled community or team.
- Users must proclaim an affinity for Shiba coin
Later this month, Shiba Inu is likely to reach another significant milestone: one million investors.
As of Nov. 15, there were nearly 963,000 unique wallet addresses holding SHIB tokens, according to Etherscan.
How Does the Shiba Inu Operate?
It is an Ethereum-based coin that is interoperable with the huge Ethereum ecosystem. According to the white paper, Ryoshi chose Ethereum as the basis for his meme coin because it is “safe and well-established,” allowing the project to stay decentralized and accessible to a large user base.
The ecosystem can be divided into three tokens:
- It is the project’s eponymous cryptocurrency, with total supply being one quadrillion coins. Ryoshi claims to have sold their entire investment in the coin, transferring half to a liquidity pool and the remainder to Ethereum co-founder Vitalik Buterin. Buterin, on the other hand, burnt the majority of his coins and donated over $1 billion to charity.
- Its second token is the leash. It has a limited mintage of 107,646 pieces.
- Its governance token is called Bone, and it enables the SHIBArmy to vote on new proposals. At 250 million tokens, Bone is the second-largest in the system.
Are you wondering “Where to buy Shiba coin”? Well, The best place to sell and buy is on its decentralized exchange, ShibaSwap.
Additionally, the ecosystem includes the Shiba coin Incubator, which strives to uncover new artistic forms outside of the mainstream, and the Shiboshi, a Shiba coin, generated a network of 10,000 distinct NFTs on the Ethereum blockchain.
Key factors you need to be aware of
The Rally
In October 2021, the Shiba Inu coin price increased tenfold, propelling it to a stunning $35 billion market value and putting it in tenth place among all cryptocurrencies by market capitalization. The Shiba Inu coin price rose for a variety of reasons, with some believing the catalyst was Tesla CEO Elon Musk’s tweet of his (really lovely) Shiba Inu puppy. Many people wonder “Will Shiba Inu coin reach $1”? Well, as per the Shiba Inu coin price prediction, crypto needs to triple surge rate to hit $1.
Additionally, the Shiba coin benefited from its recent inclusion on the Coinbase cryptocurrency platform, which resulted in a wave of new members for the SHIBArmy.
Keeping in line with the Shiba Inu coin price prediction, the value has shown a decline.
November Update: SHIB’s recent price decline found support at $0.000035, and the price appears to be approaching the end of the bullish descending wedge highlighted in blue on the chart. The critical question is whether SHIB can break free and rally sufficiently to end the correction.
A first indication that this is occurring is if SHIB is able to convert the $0.000039 resistance into support. If that occurs, there is a strong possibility that SHIB will reverse course.
Shiba Inu Coin Risks
By and large, the Shiba Inu coin cryptocurrency is a highly speculative investment that entails considerable risk. Due to their extreme volatility and lack of regulation, even currencies created to act as a substitute for real cash, carry a disproportionate amount of risk.
However, the Shiba Inu coin cryptocurrency is not real money or even a “genuine” cryptocurrency in the same way that Bitcoin or Ethereum are. Rather than that, it’s a meme coin constructed from another meme coin, a joke constructed from another joke. As is the case with many other altcoins, its success is contingent on the number and expansion of its community, not on its utility.
Consider Bitcoin: It was originally designed as a peer-to-peer system to take the place of traditional banking. Its underlying blockchain technology enables distinct utilities such as smart contracts, widespread visibility, and complete autonomy.
However, many altcoins, like Shiba coin, lack such services.
Rather than that, it was launched directly into circulation on a pre-existing blockchain at a low cost and with no effort. Furthermore, its worth is totally dependent on the speculative frenzy and excitement generated by a single celebrity’s tweets fed by social media. Even after its meteoric rise, these coins are still only a fraction of a cent each. At its peak on 31 October, $100 could purchase a whooping 1.5 million SHIB tokens.
November 15 update: Shiba Inu’s value decreased by more than 44% in November. Optimism, on the other hand, is rarely in short supply in the community. A significant announcement was recently made public, capturing the community’s attention once again.
With the cryptocurrency’s price dropping to less than $0.00004, the meme token’s recent development was quite interesting in terms of demonstrating its long-term presence in the crypto-industry.
There are over 13,000 cryptocurrencies in existence at the moment, with new ones emerging every week. Few of these cryptocurrencies provide major technological benefits over Bitcoin, Ethereum, or other leading cryptocurrencies. Effective branding is critical for standing out from the sea of altcoins. Without a strong technological advantage at this stage, it may thrive or perish on the basis of its brand in the long term.
Robinhood trading potential
Shiba coin has a devoted online community, which has been lobbying prominent trading software Robinhood to include it on its limited list of tradeable cryptocurrencies. Over 400,000 people have signed a Change.org petition urging Robinhood to support Shiba Inu.
November 10 update: Shiba Inu is unlikely to be listed on Robinhood anytime soon, based on the firm’s chief operating officer Christine Brown’s statements.
What Happened: Brown told Decrypt in a recent interview that the firm is “not going to talk about it,” alluding to the decision to publish specific assets. He added that Robinhood’s strategy is distinct from Coinbase Inc.’s, which is focused on adding as many coins as possible.
Robinhood prices drop after being hacked: Robinhood Markets Inc. notified users that a hacker had negotiated their way past the stock-trading app’s defenses, obtaining millions of user email addresses and other information.
According to the firm, the Robinhood data breach occurred late on Nov. 3, with the hacker stealing approximately five million email addresses and the identities of almost two million additional Robinhood users. Additionally, Robinhood stated that the hacker appeared to have obtained the names, birth dates, and zip codes of 310 users, as well as additional account information for several of those individuals.
Disadvantages
Volatility
When an investment doubles in value in less than a year, investors are ecstatic. Regrettably, volatility can swing in any direction. For investors trading it for an adrenaline rush or a gambler’s high, the prospect of the cryptocurrency’s price collapsing as violently as it soared may be part of the thrill.
According to Coinbase, the average holding duration for the investors is merely 13 days. Therefore, if market speculators and momentum traders quit ship simultaneously, a reversal may snowball rapidly, possibly crushing long-term investors.
Absence of practical utility
In comparison to Bitcoin and Ethereum, Shiba coin offers almost little utility for investors outside of cryptocurrency exchanges. According to Cryptwerk, just roughly 100 global retailers accept Shiba Inu as payment. These suppliers are primarily obscure enterprises focused on cryptocurrency.
Shiba Inu’s fees, transaction speed, or structure are not unique, making it more useful or practical than hundreds or thousands of other cryptos. Indeed, popular investor Michael Burry of “The Big Short” recently described it as “pointless.” Burry takes specific issue with Shiba Inu’s 1 quadrillion coin supply, implying that the enormous supply restricts price appreciation potential.
Musk is not the owner
It is one among dozens of cryptocurrencies inspired by the original doge meme. Elon Musk, the influential Tesla CEO, has been a vocal backer of Dogecoin, and he even adopted a Shiba Inu dog named Floki earlier this year. Shiba coin price spiked in October in response to Musk’s photo of the puppy, but Musk recently disappointed Shiba Inu investors by revealing that he only owns Bitcoin, Ethereum, and Dogecoin.
The recent November dip shows the pessimism being built around the coin.
Technical analysis of the November Dip
- Trading Volume: Volume declined in lockstep with the price. This is a bullish omen. Additionally, the most recent attempt to break free of the wedge was accompanied by a sharp spike in volume, indicating that interest in SHIB stays high once a rally begins.
- RSI: The RSI remains bearish, and it nearly fell below 30 points on a 12-hour timeframe. This is unfavorable, but if the RSI manages to reach a higher bottom, a recovery becomes more possible.
- MACD: The MACD on the 12-hour chart remains negative, but the histogram is very near to crossing to the upside. If confirmed, this would be the first occasion since the beginning of November that this has occurred.
What exactly is ShibaSwap?
Shibaswap is a decentralized exchange – a peer-to-peer trading platform similar to Uniswap – that enables users to trade SHIB and other cryptocurrencies without the assistance of a middleman. Additionally, it enables users to provide liquidity (deposit funds into pools that other traders can trade against) and stake tokens (deposit them into a smart contract) in order to earn interest using the shib token and two additional ERC-20 tokens in the Shiba ecosystem:
Bone ShibaSwap (ticker: BONE): Bone is a governance token with a maximum quantity of 250 million tokens. This means that holders of bone tokens can propose and vote on Shiba protocol improvements via the “Doggy DAO.” Additionally, it is minted and distributed to users who contribute liquidity to the network.
Doge Killer (ticker: LEASH): This was initially released as a rebase token (also known as an elastic token), a form of token similar to an algorithmic stable coin in which the supply automatically increases and lowers in response to a computer algorithm in order to maintain a fixed price relative to another asset. In this instance, the quantity of leashes is modified at a rate of 1/1,000 to correspond to the price of Doge.
For instance, if the price of Dogecoin was $0.05, the quantity of leash would be adjusted (new tokens would be minted or existing coins would be destroyed) to change the price of the leash to $50.
Since then, leash tokens have been “unleashed” and no longer track the doge price. With a limited quantity of only 107,647 tokens, the leash has established itself as the primary medium of exchange for many Shiba coin owners.
Should you purchase it?
SHIB (shiba coin) is one of several pet altcoins that have surged in popularity in the aftermath of Dogecoin’s (DOGE) meteoric rise.
Dogecoin is a parody of cryptocurrency that was developed in 2013 to mock the way people purchased cryptocurrencies they were unfamiliar with. It was inspired by a viral meme depicting a Shiba dog speaking in terrible English.
Its lighthearted attitude drew a large following: Elon Musk’s and other celebrities’ tweets aided in the price surge.
Worryingly, Dogecoin has never served a function. While it may be entertaining and make people laugh, its market capitalization dwarfs that of some international corporations. As such, you’d want it to have a vibrant workforce and a well-developed business plan.
Regardless of the business plan, Doge has given birth to an entire litter of pet coins, including the Shiba coin, as a result of the massive price increase.
It’s objective and technical capability are slightly more than Dogecoin’s. It even has a whitepaper (dubbed a woofpaper) in which the idea is described as a “100% community-based, cryptocurrency experiment.” You can purchase it from a number of major cryptocurrency exchanges in the United States.
Shiba coin has a decent probability of performing well in the short run simply because people are on the lookout for the next Dogecoin. This alone may cause the price to increase. Charles Xue Biqun, a Chinese millionaire, has begun tweeting about SHIB, but the coin does not yet have an Elon Musk or true celebrity champion.
Regrettably, betting on a short-term gain is never a sound investment plan. You’re just as likely to lose your entire investment. And do you want your assets to rely on boosts from the Twitter feeds of renowned people?
Shiba Inu price prediction as of November 29, 2021
Shiba Inu prices fell 3% over the last 24 hours due to lower-than-normal volume. Daily — and even monthly — price swings, on the other hand, are unimportant to the long-term investor. As a result, we’re going to look at what long-term investors truly want to know today: Shiba Inu price forecasts until 2030.
The SHIB crypto’s price has skyrocketed by an astonishing 57,000,000 percent year to date, dwarfing Bitcoin’s 95 percent gain. The majority of SHIB’s increased price movement is due to Elon Musk’s suggestive tweets.
Let us fast forward to 2030 to examine what analysts believe about Shiba Inu pricing projections throughout the long term.
- Predictions for Shiba Inu Prices in 2030: What Is the Long-Term Outlook?
- The price target set by CryptoCurrencyPricePrediction is $0.0061788. This aim reflects a 14,700 percent increase in value.
- Cryptopolitan has set a price objective of $0.002, implying a 4,700 percent gain. According to Cryptopolitan, the Shiba Inu’s unprecedented run is expected to continue in the next years.
- CoinPriceForecast is forecasting a price of $0.00197071. Indeed, the aim offers a 4,600% gain.
- PricePrediction forecasts a low of $0.001 and a high of $0.002. The lower objective implies a 2,300 percent upside, while the upper target represents a 4,700 percent upside.
Red flags
Putting aside generic concerns concerning meme coins, the website and whitepaper for Shiba coin present several specific red flags. Consider the following reasons to exercise caution:
- Unidentified founder
There is less information available about Ryoshi, the enigmatic creator (or founders) of Shiba coin. This is portrayed as a positive development because it enables the coin to be fully decentralized and community-owned. However, it appears to be a cynical attempt to dupe potential investors.
When analyzing a new cryptocurrency, it’s a good idea to look at the founders’ backgrounds to determine their experience. Additionally, you might inquire about their involvement in previous scams or unsuccessful enterprises.
- False Associations
Shiba coin attempts to portray Vitalik Buterin, the founder of Ethereum (ETH), as a SHIB hero, however, this is an exaggeration. Buterin did not request – or desire – to get 50% of the supply of SHIB tokens. And it was he, not the Shiba coin community, who chose to donate a portion of the proceeds to charity. His name is being used in conjunction with a project to which he has no relation.
Similarly, the project’s public support for a Shiba coin rescue organization has nothing to do with the coin. As an organization, it is largely ineffective at assisting abandoned animals.
- Language that is deceptive
The bitcoin discusses the need of establishing a decentralized environment (which it calls a DECO). However, what it is describing is a decentralized exchange – of which there are currently plenty. The coin is based on the Ethereum platform (which is an ecosystem where other applications and cryptocurrencies can be built). However, its not clear what makes Shiba Inu a self-contained ecosystem.
The bull case
When discussing cryptocurrency, the phrases coin and token are sometimes used interchangeably, but they actually refer to two distinct entities. By and large, cryptocurrencies are driven by blockchain technology, a decentralized ledger that keeps track of transactions, account balances, and supply constraints. Coins are digital cryptocurrencies that have their own blockchains, whereas tokens are digital currencies that utilize pre-existing blockchain infrastructure. It is classified as the latter.
It is an ERC-20 token, which is a sort of smart contract that runs on the Ethereum blockchain. Additionally, Shiba coin is compatible with a broad ecosystem of Defi services too.
The bear situation
Despite this potential, the functioning of the coin is fairly limited. Of course, those factors may change in the future — but for the time being, Shiba Inu has few (if any) convincing use cases. From that vantage point, it’s difficult to justify it’s USD market capitalization of $21,672,704,911 as of 29th November 2021.
Is Shiba Inu Coin a good investment?
No, but before investing in anything, it’s critical to grasp the investment’s basics. Simply because the price of a stock or cryptocurrency has exploded overnight does not guarantee it is a good investment, and in many circumstances, a sharp price increase is a red flag.
Shiba coin price has soared mostly as a result of retail investors stockpiling tokens as a short-term investment. These investors frequently form a cult around a specific stock or cryptocurrency, spend significantly to drive its price skyward, and then sell when the price reaches a new high.
These investments can be extremely dangerous, as their prices do not necessarily correspond to their fundamentals. It has virtually little practical utility at the moment, and its price is increasing primarily due to its following community. If those followers sell their tokens and invest in something else, the Shiba coin will lose nearly all of its value.
That is not to imply that investing in Shiba coins is not worth it, but it is difficult. Unless and until it establishes real-world utility and a significant competitive edge in the crypto sector, there is a good risk it will eventually collapse and burn. If you do not sell at the optimal time, you risk losing a significant amount of money.
It is, therefore, a high-risk and potentially dangerous investment. It is not appropriate for everyone, and there are more conservative investment strategies that maximize profits while minimizing risk.
FAQs
How to buy Shiba Inu coin?
There are many exchanges which allow buying and selling of Shiba Inu coins, some of which are Coinbase Pro, Binance, FTX, Gemini etc.
At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.