Shiba Inu or SHIB is an Ethereum based token. The coin emerged in 2020 when it made waves in the digital asset’s market and gained immense value. Although, Shiba is termed as a meme coin, it has enough popularity around the world compared to other altcoins. The coin is supported by celebrities like Elon Musk and even Vitalik Buterin. Shiba Inu has quickly gained immense rank in the past few years.
The toke is presently diversifying its utility and trying to increase its real-world cases rapidly. Despite gaining too much attention in a short time, the question still remains whether or not to invest in Shiba Inu.
Key Takeaways
- A brief introduction to Shiba Inu.
- Factors influencing the value of Shiba Inu.
- What are the risks of investing in Shiba Inu?
- Who will be benefitted from investing in Shiba Inu?
- Knowing whether Shiba Inu is suitable for long term and its future forecasting.
Factors Influencing the Value of Shiba Inu
Just like other crypto tokens, Shiba Inu is also affected by certain factors. These factors are as follows.
- General market sentiments related to cryptocurrency.
- Community and marketing activities.
- Applications and utilities.
- Node counts.
- Macroeconomic factors impacting the financial markets.
- Acceptance of meme coins by the retail markets.
Besides these factors, Shiba is known in the market due to the hype created by celebrities. This affects its value and adoption.
What is Shiba Inu?
Shiba Inu is a cryptocurrency that is used for peer-to-peer digital payments or as a payment method which is accepted by the businesses. Originally known as a “dogecoin killer”, it has slowly and smoothly creeped into the ecosystem.
While Shiba Inu is very popular among some, especially with the support of eminent personalities, it still has a small market capital.
Shiba Inu Ecosystem
Surprisingly, there are several Shiba Inu tokenomics which are much better than anyone can imagine.
1. Shiba Inu (SHIB)
SHIB is a native and fundamental project cryptocurrency. With the initial supply of one quadrillion coins, the price of Shiba Inu did not rise above $0.00000008 per coin during the first half year since its creation.
2. LEASH
This is the second token in the ecosystem that projects the rewarding side of the project. Leash is issued to the supporters of the ecosystem and offers various perks to the holders. Leash has a limited supply of around 107,000 and is also called Doge Killer Leash.
3. Bone (BONE)
It is a governance token made within the ecosystem and is used in the Shibarium to reward the validators that stake their coins. It is also rewarded to the deligators who pass their voting rights to the validators.
4. Treat (TREAT)
This is a mysterious coin within the Shiba Inu ecosystem. It’s purpose is not yet discovered by the masses.
Shiba Inu Essentials
- ShibaSwap: This is a DeFi platform where the traders can trade cryptocurrencies, especially on the coins that are related to the ecosystem like LEASH and SHIB.
- Shiba Inu Incubator: This is an incubator platform that finds new ways to reward and honor ingenuity and creativity of arts other than the standard forms like digital rendering.
- Shiboshis: These are Inu generated tokens that belongs to the non-fungible (NFT) class. It represents unique collectibles and also have their own social club.
Is Shiba Inu Safe?
In simple words, Shiba Inu is not a safe investment option because the digital asset has garnered attention only due to social media but not adoption. Adopting cryptocurrency presently has become much slower than people expected and even Bitcoin is struggling. With such anticipations, Shiba Inu is not out of the risk spectrum. And it is not until the significant coins start gaining attractions that Shiba Inu can.
The investors and the traders must keep in mind that the cryptocurrencies work in cycles. When every people is excited about cryptocurrency, even smaller coins like Shiba Inu can take off. However, then crypto market is barely remembered by people, the prices of the assets can significantly fall down.
Most of the traders and the investors got stuck into owning Shiba Inu due to its cheaper price. They forget that the gains for the tokens are measured in percentages. And that any currency which has a lower price does not mean that it will take off significantly.
Risks of Investing in Shiba Inu?
Shiba Inu or SHIB is a high risk investment. The coin deemed as a “meme coin” had little utility other than trading. SHIB is increasing its applications. The token has its own metaverse known as the SHIB metaverse.
The leading developer of Shiba Inu, Kaal Dhariya has also announced upcoming NFTs, ERC404 and fungible tokens. This is a substantial contribution to commitment and organic growth towards increasing real time applications.
Shiba Inu is changing its landscape and moving towards an organic ecosystem. This new change in its ecosystem will bring more value to the coin rather than being a simple meme coin.
Who Should invest in Shiba Inu?
Simply put, you should only invest in SHIB if you have something to lose. Although, this thing is true when you are talking about the cryptocurrencies. However, it becomes more dangerous for the altcoins.
The idea of investing in Shiba Inu is a misnomer because it is way more than volatile to consider for an investment in normal terms. The traders need to pay close attention to the Shiba Inu communities. The token does not have any hard-core followers.
Therefore, those investors who go “all in” for Shiba Inu attract financial ruin for themselves. It might be one of the smallest asset allocations due to the large amounts of volatility.
Is Shiba Inu Suitable for Long Term Investments?
Shiba Inu is a speculative asset under certain circumstances, and it might offer a certain amount of high-risk or high-reward appeal. At the same time, there is no proper conclusion on whether it can be considered as a long-term investment or not. But, the early signs point to it not being so.
Remember that when Shiba Inu gained attention, it was a meme coin, essentially an offshoot of Dogecoin. For Shiba Inu to achieve traction, it should build a real-world case. In simple words, people have to accept the token as a payment token, which becomes an investment. It is a simple way of short-term trade in the market, expecting significant gains.
How to invest in Shiba Inu?
Investing in Shiba Inu is the same as investing in any other cryptocurrency. You can buy Shiba Inu coins on any cryptocurrency exchange and keep them there or in the wallet. You can also sell the Shiba Inu coins when the price movements go in your favour or hold them for a longer term.
But, if you wish to make profits with the Shiba Inu coins, you must use a different market. Also, the traders can use leverage for Shiba Inu. It means that they can hold more prominent positions than they can afford.
Future Price Forecasting of Shiba Inu
The future price of Shiba Inu is very uncertain and so are the price predictions of the token. Sadly, the future of the crypto coin strongly depends on its community and the patrons that it has gained over the years.
The past performances showed that the past price of Shiba Inu on different occasions correlates with the social media inputs, including those from the whales. Sometimes, tweets from enthusiasts like Elon Musk can also have incredible effect and sometimes acts as market movers.
Conclusion
The question of whether or not to invest in Shiba Inu completely depends on the financial goals of an individual. If you can understand the crypto market adequately and can capitalise on the volatility of the crypto market, then Shiba Inu investment can be a worthy option. The decision for investing on Shiba Inu best depends on the financial state ahd the future goals
If you are willing to invest in Shiba Inu, download the Mudrex App from the Play Store now and add them to your portfolio. The platform has minimal fees, and you can easily add SHIB to your wallet.
FAQ
1. Is it worth investing in Shiba Inu?
Shiba Inu is not a prominent currency unlike Bitcoin or Ethereum. Therefore, it will likely remain as a speculative and volatile cryptocurrency for the foreseeable future. It is better not to invest in Shiba Inu if you are looking for long term returns.
2. Does Shiba Inu have a future?
The future of SHIB is entirely uncertain and it depends on several factors. A strong community support is essential for the growth of a crypto token. But, SHIB is more subjected to the volatile market.
3. Should I buy Shiba Inu Now?
The current market price of Shiba Inu is down. The volatile cryptocurrency is a highly risky investment. Therefore, it ain’t be a suitable investment for the majority of the investors.
