We know the bullish market is here and flourishing when meme coins like DOGE start to pump, and the same goes for a wide myriad of “shitcoins” like Safemoon, 100xCoin, and now Shiba Inu (SHIB). Even though its fans and “hodlers” argue it’s a solid project, we will analyze the pros and cons, as well as its possible link to Elon Musk and the chances it has at mooning.
So, before you go to buy bitcoin to exchange it for SHIB in hopes of making millions, sit down and read this guide because it could mean the difference between profiting from this bullish market cycle and losing all of your money.
Is Shiba Inu (SHIB) the Same as Doge?
In many senses, it’s the same as DOGE. It’s basically a parody of a meme coin, which makes it also a meme. However, it lacks a crucial aspect: it doesn’t have Elon Musk’s endorsement. Without such a big hype component, it hasn’t been able to obtain the same growth as DOGE.
Nonetheless, by simply being similar to DOGE, it has managed to achieve a market capitalization of over $10B. However, the price and market capitalization dumped when Vitalik decided to donate all of his $SHIB (over $1B at the time), in an effort to relieve the spread of COVID-19 in India.
$SHIB has grown into the coin it is right now by piggybacking off DOGE popularity. Without DOGE, it’d be nothing. And just like DOGE has already to dump, the same has happened to $SHIB, especially during the recent bitcoin price action.
However, it’s fair to say that this project is more serious than DOGE since it plans to implement a swap protocol similar to CAKE and UNI, as well as other DeFi and practical applications. But does it mean that this is a good investment? Let’s explore the evidence.
Also, read - How to mine SHIB and MATIC (Polygon) on Unmineable
Why Should You Buy $SHIB?
Honestly, it’s a risky bet. It’s already into the billions of dollars in terms of market capitalization, and hence, the probabilities of multiplying your investment by 100%, are quite low. Especially since it lacks Musk’s endorsement and tweets that could boost its price once Bitcoin comes back into an uptrend.
However, it could be pumped by another celebrity or influencer, and in case the project actually releases its swap service and other interesting features, it could gain traction, and hence, it could make your investment grow.
Other than that, $SHIB remains a risky bet, especially when you have many other great alternatives like MATIC, UNI, DOT, SOL, etc. which are at low prices right now, and could pull back even more if BTC decides to test the $30,000-$21,000 region.
SHIB is already on the moon, it has already made millions to lots of people, the ones who bought it when it was worth almost nothing. The train has left without you, and it’s better to accept it and look for better options.
Why Should You Avoid $SHIB?
$SHIB has more cons than pros, and therefore, it’s better to avoid it. Let us explain the reasons to do so, in order to protect your capital.
Market capitalization is too high
For a coin to increase its price, market capitalization has to grow as well. When a coin gets into the billions mark, and without proper fundamentals and hype, it’s very difficult to duplicate its value let alone grow a 200-500%. This is the case for $SHIB, it’d need a massive influx of money to grow exponentially at this stage, and we don’t see it happening, at least not any time soon.
Even with token burns, the risk to reward ratio is not good for you. It was good to buy $SHIB at the beginning, but at this time, it’s not a good bet. On the contrary, it can make you lose lots of money if BTC decides to dump.
The project lacks the hype
Unless Elon Musk starts shilling it, or any other relevant influencer, the project will never fly as high as DOGE. It was born as a parody of DOGE, but without the hype element, it won’t attain such a high market capitalization.
The project lacks fundamentals
The project was born as a parody, and unlike other solid coins like MATIC, it lacks an actual purpose that could attract investors. This only makes it an even riskier bet, especially when you can put your money in better options at this time. Focus on quality, even more during the dips, and your portfolio will grow way more than you think. Buy smart, hold and sell in batches.
What do you think about SHIBA? Do you hold any $SHIB? Let us know in the comments because we’d like to hear your arguments in favor or against SHIBA!