Shiba Inu Token Review – Is it a Dogecoin Killer?

Shiba Inu is a name that instills a lot of enthusiasm in the crypto community. People seem to love this coin and speculate on it blindly. Many crypto enthusiasts are taking a very conservative approach toward this token.

However, the kind of price jumps it has seen over the months will tell you a different story. While bull runs always entice the public, one should never get involved with speculative assets like this one just for the thrill.

Remember, notable personalities like Elon Musk and Vitalik Buterin might have a huge influence in this space, but they also will never put their shirt on a single ticker. The practicality of this coin and the kind of uniqueness it holds is a subjective matter.

In plain simple words, know that there isn’t anything truly unique about this coin and fundamentally, there is no driving factor. Million percent returns are obviously impressive but do note that the downtrends also have been pretty significant. We could discuss the value propositions all day long.

Nonetheless, at the end of the day, we cannot deny the fact that the future is uncertain and as such, we should take proper steps to mitigate risks. As a general rule, we suggest people never invest more than 3% to 5% of their portfolio in a single coin.

To know more about the Shiba Inu token and the things associated with it, continue reading. 

Background

Shiba Inu in many ways is similar to Dogecoin. Both of the tokens do not have much value in real life and the speculation present in the relevant markets is unimaginable. The whole internet seems to be obsessed with these types of risky assets and the data suggests that the trend is likely to continue.

Social media platforms fuelled the Dogecoin trend and as many newbies saw quick money, the obsession continues and the landscape is resembling Vegas-type conditions more than anything. Shiba Inu is an ERC-20 token that goes by the name “SHIB” on many popular exchanges.

To buy this coin, the process is pretty straightforward and for the best experience, a Binance account is all you need. The token-burning mechanisms used by the founder of this cryptocurrency are a debatable topic. They claim to have burned more than half of the supply.

However, if you read between the lines, that is not entirely true. Vitalik Buterin holds a large portion of this token and according to online sources, he did donate a big chunk of the coins to the Covid relief fund in India. All in all, things around this token are somewhat transparent.

Nonetheless, never go all in on this coin for any reason. YOLO trades might be attractive or inspiring to the viewers, but in real life the probability of success using this approach is bleak and it is not worth it to follow this approach. 

Shiba Inu Price Jumps

If you visit Coinmarketcap, everything you need to know about the metrics of this coin can be found in one place. According to the data we found on the CMC, this coin currently has a market cap of $3,016,957,762, The diluted cap is $7,582,096,299.

Circulating supply is ​​394,796.00B and the max supply is 1,000,000,000,000,000. Regardless of what any influencer or YouTuber might say, we cannot deny the fact that this token isn’t a deflationary one. The supply and demand curve does not add any pressure on the price and apart from a strong community, there isn’t anything noteworthy about it.

Even the founders are anonymous and the white paper is not as detailed as it could have been. Note that, Shiba Inu is trying to make a mark for itself and it is getting into the NFT space too. However, due to the number of alternatives available, it seems to be losing the battle as of now.

Currently, this token is ranked 38 by Coinmarketcap and the ROI is said to be around 469,988% from the earliest known price level. If we take a look at the price action charts, it is clear to us that the volatility is more than Bitcoin, and due to the small market cap it has, it is easy for the whales to move prices drastically.

As the market is relatively small, make sure to not use leverage unless you have enough experience. Also, do not rely on too many technical indicators while trading this coin because of the sheer volatility present.

If you are someone that likes a laid-back approach, then invest a negligible amount and leave it for the long term. After all, not everyone wants to stay glued to the screen, right?

Is Shiba Inu a legitimate Cryptocurrency?

Cryptocurrency markets for the most part are unregulated. Many fly-by coins and projects have stained the industry and the people that have lost money are frustrated, to say the least. Coins like Shiba Inu scare a lot of people as they are worried about the longevity of the project and it has a lot to do with their legality aspect as well.

First and foremost, this token is a complete legal instrument and most people can buy them within minutes of opening an account with mainstream exchanges. The white paper on this cryptocurrency reveals a lot of ambitious goals and ventures.

If you solely focus on the narratives, then the things mentioned are highly likely to entice you. While there is nothing wrong with being optimistic, do remember that there are dozens of cryptos with the same goal and the future is not crystal clear for any one of them yet. So, proceed cautiously and invest only the kind of amount that you are comfortable losing.

Traditionally speaking, it is possible to mitigate risk to a large extent by using derivatives. Sadly, most cryptocurrencies do not have a derivatives market yet and that’s exactly why you need to avoid things like over-leveraging, day trading, etc. 

Projects Associated

Anyone that has read the white paper of this token can tell you that the explanation sounds more like a sales pitch than anything else. Shibswap is the next big thing the founders of this token want to achieve. Shibswap is a sub-entity that aims to establish a decentralized exchange.

The main agenda is to bring transparency in this sector and dice the conflict of interest to the lowest amount possible. Every decentralized exchange has its own set of flaws and this one is also bound to hit a few bumps on the way toward their end goal. The way they are planning to enter the ecosystem and dominate the space is unclear. With no solid plans, we cannot gauge anything about their activities and all we can do is hope for the best.

Giving the benefit of the doubt is always a risky thing and it affects their credibility factor to an enormous degree. The NFT craze in the market is also working out well for this coin. The Shibaswap platform is trying to create an interface that allows people to buy, create and trade NFTs. The artist incubator program is running and there is a good chance of achieving the end goal within a few months.

NFTs are not exactly a retail investor’s paradise. The art sector as always is kind to the rich and wealthy. So, plan your steps accordingly and do not get involved unless you have a solid blueprint. Seeing meme materials being sold for millions might capture your attention.

However, for your own good, do not let your curiosity get the best out of you. Anyone that makes money in this space has spent a lot of time researching things and finding trends. Till the time you gain an edge, it is a wise move not to commit your capital. 

Is Shiba Inu Better than Bitcoin and Dogecoin?

This question is perhaps the easiest one ever. The answer is an obvious no. Cryptocurrencies are in a weird place right now. The adoption curve is going up exponentially. However, it is not as big as the traditional markets, and believe it or not, it has a long way to go. Bitcoin is the king of the cryptocurrency market.

From market cap to practicality, it has everything an investor needs and even institutions have realized the points mentioned above. Since 2008, BTC has gone up, unlike any other instrument the world has ever seen. Governments tried their best to put an end to the bull run.

Nonetheless, the masses and the holders of the coin were firm and the price always followed the stock-to-float model. Comparing Bitcoin to Shiba Inu is not the right way of seeing things because BTC is a proven coin that is the first of its kind. On the flip side, Shiba Inu has a long way to go and the current price level it is trading at tells us everything about the sentiment.

Dogecoin and this token have a few similarities, but none of them is something that can be categorized as valuable. We are not saying that SHIB will crash anytime soon.

Our intention is to educate you about the facts in the current crypto landscape which will enable you to make informed decisions. The bottom line is that BTC is the king of cryptocurrencies and Shiba Inu will not come anywhere close to that level in the near future. 

Conclusion

There are over 10,000 cryptocurrencies available to the public at the time of making this post. For newbies, it is easy to fall for the traps set up by con-man or marketers because of the inversion narratives present. The realistic chances of finding the next big thing in this space are indeed very small and that is a fact. So, understand the risks involved and start investing in a conservative style.

Once you gain momentum, withdraw your initial capital immediately and invest the rest. More importantly, make sure to deal only with reputable exchanges and understand the way an instrument works before placing any positions. If your goal is to make passive income, then crypto staking would be the best option.

Shiba Inu has a loyal community of over 300,000 people. Big names are involved with the token. White papers are clean, but there is something lacking about them.

While we do not have a crystal ball that can predict the future, we are sure it is going to be good for the crypto community. Unfortunately, most of the coins that are trending won’t last for a decade. Choose your coins carefully and if required, get help from professionals. 

Shiba Inu is a volatile asset. Before purchasing this token, talk with a licensed financial planner for the best results.