The meme-based Shiba Inu cryptocurrency has seen a sharp decline in the past month, indicating a possible loss of investor interest. According to Benzinga, the Shiba Inu coin has dropped by 60 percent since its peak in October and social media interest has decreased by 29.2 percent in the last week. Its value has also dropped by 22.65n in the last 24 hours. The Shiba Inu coin relies on the greater fool theory, which suggests that most people buy it with the intention of selling it to someone else for a higher price in the future. This rapid growth is not due to Shiba Inu's strength as a cryptocurrency, but to its supporters artificially inflating its price.
The coin experienced a surge in May when Binance announced that it would list Shiba Inu coins, meaning that buyers and sellers could start trading them on the platform. This caused a lot of buzz around the currency, not only in the cryptocurrency media and on Twitter, but also in more traditional media. Unfortunately, Shiba Inu (SHIB 24.23%) investors are feeling the heat as the high-flying token reverses many of its October gains. The coin also slumped in May along with other cryptocurrency markets after posting significant gains since the start of the year. The high concentration of owners makes Shiba Inu risky because these people can easily move the price, which may have already started as the price of Shiba Inu has fallen rapidly in the past two weeks. Like its predecessor, Dogecoin, Shiba Inu has a large community of supporters who have invested heavily in the cryptocurrency in order to drive up its price.
While there is no guarantee that these investments will survive for decades, they do have real advantages over trendy cryptocurrencies like Shiba Inu. Those who invested early and held on to their tokens have likely made a lot of money. Johnny Lyu, CEO of KuCoin, the world's third-largest cryptocurrency exchange, said that Shiba Inu cryptocurrency could be a good long-term investment because it has a number of young investors. However, Elon Musk has revealed that he himself does not own any Shiba Inu coins, but does own Bitcoin, Ethereum and Dogecoin. In conclusion, while Shiba Inu has taken center stage inside (and outside) the cryptocurrency industry, it is important to be cautious when investing in this currency due to its volatile nature and high concentration of owners. It is possible that those who invested early and held on to their tokens have made a lot of money, but there is no guarantee that these investments will survive for decades.
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