Shiba Inu Coin, based on the same breed of dog, has witnessed its price drop lately.
It peaked at $0.000088 in late October and has since fallen to $0.000045.
Ende October, the currency plummeted swiftly due to a whale withdrawing $2.3 billion from their crypto wallet.
It had been largely steady lately but fell almost 11% on Thursday.
The meme money has risen by nearly 60,000,000% in a year.
Its market value is at $26 billion.
But what makes it so popular, and can it expand in popularity? Here’s the lowdown.
Shiba Inu Coin
A decentralized spontaneous community builder, Shiba Inu Coin describes itself on its website.
It was introduced in August 2020 and is traded on ShibaSwap, a decentralized exchange.
50 percent of the entire supply is linked to Uniswap, a decentralized financial system that automates cryptocurrency token transfers on the Ethereum network.
The other 50% went to Ethereum co-founder Vitalik Buterin.
To ensure a fair and full distribution, no programmers may possess team tokens to dump on the community, the website claims.
However, according to Binance, “the top 1, 2, and 5 wallets possess 50.5%, 7%, and 3% of total supply”.
Shiba Inus, like Dogecoin, is the coin’s mascot. It calls itself the “Dogecoin Killer.”
Why is Shiba Inu so popular?
Some investors appreciate Shiba Inu because it offers rapid returns. But you might also lose all your money in an instant.
“Memes have value and have been an investible thesis in 2021,” said Jonathan Cheesman, head of institutional sales at FTX. Retail likes lower dollar-price tokens.”
Rumored inclusion on the renowned trading site Robinhood has also boosted the market.
While Robinhood has yet to reply to the petition, its CEO Vladimir Tenev stated the platform would “carefully analyze whether we can introduce new currencies in a manner that is secure for clients and in compliance with legal requirements”.
We are extremely pleased with the currencies we now offer on our platform,” he continued. We want to feel comfortable about any new currency we add.”
Just last month, Elon Musk posted a photo of his dog, and it was enough to sway the Shiba Inu market.
Musk owns Bitcoin, Ethereum, and Dogecoin, but not Shiba Inu Coin.
“I expect a short-term correction as the euphoria fades,” she added.
Jordan McCreery, the co-founder of Ingrained Media, is more optimistic.
Shiba, he believes, has the potential to rise from a fraction of a penny to at least $0.01.
Don Guo, CEO of finance startup Broctagon, says Shiba Inu will never hit $1.
“SHIB needs a market capitalization of one quadrillion US dollars,” he told The Express.
“By contrast, the US National Debt is $23.3 trillion, which is less than 3% of the money necessary for SHIB to reach that price threshold.
“Given present trends, Shiba is more likely to stay under a fraction of a cent.”
Should I buy Shiba Inu?
Cryptocurrencies are not regulated by the British financial authorities.
Investing in crypto is dangerous, but meme currencies like Shiba Inu are extremely volatile, and you might lose your whole investment.
“Investing in crypto assets, or investments and loans connected to them, often poses extremely significant risks with investors’ money,” the FCA cautioned in January.
“Investors in these products can expect to lose their whole investment.”
Senior investing and markets analyst Susannah Streeter has discussed the dangers to i.
“On top of being incredibly volatile, most cryptocurrencies are unregulated, which adds to the uncertainty and leaves investors vulnerable to fraud,”