Many pet coins have gained popularity following Dogecoin’s (DOGE) meteoric rise. Its upbeat tone drew a large following. Celebrity tweets like Elon Musk’s have helped boost the price.
Dogecoin vs. Shiba Inu
Dogecoin is a parody of cryptocurrency, created in 2013 to mock people buying cryptocurrency they don’t understand. It was based on a Shiba Inu dog who spoke broken English.
Worryingly, Dogecoin has never served a function. It may be amusing, but its market cap dwarfs several global corporations. So it needs a team and a business plan. Due to the massive price increase, Doge has given birth to an entire litter of pet coins, including Shiba Inu.
Shiba Inu may do well in the short run as people look for the next Dogecoin. It may increase the price. Though SHIB has a Chinese billionaire champion in Charles Xue Biqun, it lacks an Elon Musk or real celebrity champion.
Investing based on a potential short-term gain is never a good idea. You may lose everything.
Shiba Inu has a purpose and technical abilities a little more advanced than Dogecoin. According to its whitepaper (a woofpaper), the project is a “100% community-based cryptocurrency experiment.” Several major US bitcoin exchanges sell it.
Investing Pet Coins
Having pet coins is amusing. But it’s unclear how and if these coins will serve as investments.
For example, Dogecoin has gained so much popularity that it may become a viable digital payment accepted by many retailers. There’s a lot of determination in the digital payment industry, and it’ll get much more crowded if governments start issuing their own govcoins.
Meanwhile, Shiba Inu fans on social media encourage each other to buy and hold the coins, hoping to boost the price. Someone borrowed money and invested it in SHIB, according to a Reddit post.
Everyone believes that if they keep buying, they will eventually become wealthy. It is understandable. Sadly, this isn’t the case, and some people will be burned as soon as people start selling. And if you borrow to acquire a risky investment, you may end up in debt.
Shiba Inu’s red flags
Shiba Inu’s portrayal of Ethereum (ETH) founder Vitalik Buterin is based on a SHIB hero. Buterin didn’t ask for or desire to receive 50% of the SHIB token supply. And he, not the Shiba Inu community, chose to donate a percentage. A project he has no involvement in
Unknown to Ryoshi, the mysterious founder of Shiba Inu, is Ryoshi. As a result, the coin is decentralized and belongs to the community. But it seems more like a sly ploy to hoodwink investors.
Shiba Inu discusses a decentralized ecosystem (which it calls a “DECO”). But it’s describing a decentralized exchange that already exists. The coin is based on Ethereum, an ecosystem where other applications and cryptocurrencies can be built. But I’m not sure what makes Shiba Inu an ecosystem.
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