Shiba Inu has become one of the biggest cryptocurrency stories of 2021. It is the poster child of memecoins and how a paltry gamble in a coin that serves no purpose can turn you into a millionaire.
Now, many people have the idea that it is still a good idea to invest in Shiba Inu. This article will examine whether or not it makes sense to invest in Shiba Inu coin.
What is Shiba Inu Coin?
Shiba Inu Coin ($SHIB) is an ERC-20 cryptocurrency. It was launched sometime in August 2020 by an anonymous developer known as Ryoshi. Ryoshi touted SHIB as a “Dogecoin killer.”
Dogecoin is, of course, the first meme coin and also named after a dog.
Anyway, SHIB has even crazier tokenomics than Dogecoin. SHIB has a maximum total supply of 1 quintillion (1,000 trillion). However, 50% of the max supply (read: 500 trillion) has already been burned.
Crazy tokenomics like that give SHIB a very low price despite a fairly large market. SHIB has a market cap of $3.4 billion and a price per coin of $0.000054.
The developer(s) behind Shiba Inu have also launched a decentralized exchange in order to add some utility to the coin, which we will cover in the next section.
Is Shiba Inu Coin a Smart Investment?
Shiba Inu Coin is not a smart investment.
However, just because Shiba Inu is a bad investment does not mean you can’t make money with it. In fact, most of the best investments in cryptocurrency sound completely awful until they do a 100x and make you extremely wealthy.
Ethereum, Bitcoin, Dogecoin, Chainlink, and pretty much every grassroots type cryptocurrency were relatively bad investments at their time of creation. Granted, those cryptocurrencies at least had a purpose to them.
Shiba Inu is simply a meme coin.
Anyway, we would say that Shiba Inu is not a smart investment at the moment simply because the price of the coin has already gone up 90,000,000% in 2021. The market cap currently stands at $30 billion, which ranks it as the 11th largest cryptocurrency by market cap.
That means there is not all that much room for Shiba Inu to grow. The best time to invest would have been when the market cap was floating in the hundreds of millions or lower.
Where to Buy Shiba Inu?
You can buy Shiba Inu on most centralized exchanges due to the popularity of the cryptocurrency. Binance, Coinbase, Crypto.com, Bitfinex, Huobi, and eToro.
Oddly, Shiba Inu is not available for sale on Kraken, but that is not too big of an issue because the cryptocurrency is available on so many different exchanges.
You can also purchase Shiba Inu on decentralized exchanges like Uniswap and Sushiswap. We do not really recommend that because you will pay extremely high Ethereum gas fees. It is still a possibility, though.
The Power of Meme Coins
Meme coins have become one of the hottest trends in cryptocurrency after the price explosion of Dogecoin in the first half of 2021. This has led to a huge amount of meme coins being released because the technological skill required to launch these coins is not very high.
In fact, anyone can launch an ERC-20 token with a few mouse clicks as long as they are willing to provide some liquidity to a trading pool on Uniswap.
The thing with meme coins is that their lack of utility is a sort of utility. Meme coins attempt to harness the power community and memetics to create something of value.
This might sound ridiculous at first glance. How can something that literally does nothing have any value?
However, we see this with NFTs. JPEGs that anyone can right click and save sell for hundreds of thousands and sometimes millions of dollars.
It is almost inexplicable. There is not much explanation other than meme coins concentrate enough human energy into a particular item, and then attach a value to that time.
Basically, you can think of the valuation of meme coins as a valuation of the amount of human energy focused on a particular project. For instance, Dogecoin received a large amount of eyeballs on it due to Elon Musk and other celebrities tweeting about it.
This subsequently saw the price rise as more and more people purchased it.
The same concept even applies to Bitcoin because, let’s be real, Bitcoin does not have that much utility to warrant the current $65,000 price tag. Instead, the price is driven by the large amount of attention that Bitcoin has received in the media.
Combine that with a low total supply and the value of each individual bitcoin can go quite high.
That covers it for whether or not it is smart to invest in Shiba Inu. It’s not really a smart investment – you are basically betting on the continued success of an almost maxed out meme coin.
However, there is still some room for price increase with Shiba Inu because it still has not received the celebrity endorsements that Dogecoin received, which means there is still potential.
Really, you should look at investing in meme coins that have not experienced a runup. There are a lot of meme coins attempting to copy Shiba Inu and Dogecoin, so you will have to use your own judgment when picking one out.