The recent surge of Shiba Inu (SHIB 24.49%) has been a cause for celebration for some and a source of concern for others. After billionaire entrepreneur Elon Musk posted a photo of his new Shiba Inu puppy with the caption “Floki Frunkpuppy” on Twitter, the price of the token skyrocketed. But with the Chinese government increasing its crackdown on cryptocurrency hoarding and mining, the entire crypto market has taken a hit, and Shiba Inu is no exception. The main reason for the fall of the cryptocurrency market is attributed to the Chinese crackdown.
This news led to a bloodbath in the cryptocurrency market, and almost all cryptocurrencies, including Bitcoin, have plummeted. In recent trends, Shiba Inu has behaved opposite to the momentum of the cryptocurrency market, especially Bitcoin. However, this time Shiba Inu has fallen in line with the cryptomarket. The high concentration of ownership makes Shiba Inu risky because these people can easily move the price. Once its price peaks, these investors are likely to sell their tokens and move on to another investment.
This may have already begun, as the price of Shiba Inu has fallen rapidly over the past two weeks. And because it lacks a competitive edge in the industry, it may struggle to recover after its fall. The recent rise of Shiba Inu was caused by the massive pumping of Shiba Whale, however, as the price started quickly, the whales made huge profits, therefore, the big whales dumped heavily and made huge profits from it. These rises came after billionaire entrepreneur Elon Musk posted a photo of his new Shiba Inu puppy with the caption “Floki Frunkpuppy” on Twitter on 4 October. In addition, growing mainstream support will make it easier for puppies to sell their Shiba Inu in exchange for fiat currency rather than other tokens, making it considerably easier for them to profit in the real world. However, keep in mind that this is a meme currency, which means that the value could plunge if retail investors or Mr Musk lose interest. Shiba Inu issued a warning to its investors on Monday related to a scam on Telegram and warned its Twitter followers that it was not offering any promotions, including airdrops, bonuses, gifts or giveaways.
Shiba Inu can be purchased on Binance, Coinspot and Coinbase much more easily than on Trust Wallet. This is a big threat because Shiba Inu relies on the greater fool theory, which suggests that most people buy it to sell it to others for more in the future. The explosive growth is not due to Shiba Inu's strength as a cryptocurrency but because its supporters have artificially inflated its price. Therefore, if you are willing to risk your money (and know that you might not get it back), then Shiba Inu might be worth it (like a trip to the casino) and could continue to boom for a while. Take this as a compliment or an insult (take your pick), but Shiba Inu is sustainable in the same way that Dogecoin is: it will last as long as there are people to buy more. Shiba Inu is far from alone: many developers have tried to cash in on it (with catchy names and the like).In conclusion, although Shiba Inu does not have the same mission statement (it aims to be the Dogecoin killer), its success depends on investors buying into its hype and artificially inflating its price.
Bigger spikes may be just around the corner but if retail investors or Mr Musk lose interest then its value could plunge quickly. Therefore, if you are considering investing in this meme currency then you should be aware of all these risks before investing.
Leave Message