The S&P 500 is known to increase on average about 10% per year over the long term. Investing early and then adding savings regularly can help build lasting wealth. Cryptocurrencies, on the other hand, have created millionaires in a very short time. Bitcoin and Ethereum are the two most popular and developed cryptocurrencies, but there are many smaller ones that have generated life-changing returns.
Shiba Inu (quotation CRYPTO: SHIB) is one of these tokens. If you were bold enough to invest $ 100 in the SHIB coin at its founding in August 2020, your position would be worth $ 5,9 million today. Not a bad performance for less than 18 months! Read on to find out more about Shiba Inu.
The Shiba Inu roller coaster
Created by an anonymous developer named Ryoshi, Shiba Inu has had a couple of big spikes in its history, spanning less than two years. Of the initial supply of 1 quadrillion tokens, 50% was sent to Ethereum co-founder Vitalik Buterin in an effort to gain credibility among the cryptocurrency community.
Shiba Inu stayed under the radar until the spring 2021 meme-stock craze, when it quickly increased its value. Buterin then donated a portion of his holdings to help India fight its battle against the pandemic. This act helped raise Shiba Inu's profile.
But after falling precipitously in mid-May, the Shiba Inu remained relatively flat until early October when another wild bull run began. Tweets from Tesla CEO Elon Musk helped spur speculative interest in the coin. And in November, cinema chain AMC Entertainment Holdings also announced that it would begin accepting payments into Shiba Inu in the coming months. But the token has since collapsed. Shiba Inu is now the 14th largest cryptocurrency, with a market cap of $ 16 billion.
Shiba Inu has no advantages
Since Shiba Inu is built on top of the Ethereum blockchain, it has more functionality than its rival Dogecoin, which runs on its own blockchain that is built solely for payments. As a result, the Shiba Inu community has created a decentralized exchange, called ShibaSwap, which allows SHIB holders to stake their stakes and earn rewards. This encourages investor loyalty. Additionally, the community plans to develop a platform for non-fungible tokens (NFTs), called Doggy DAO.
While these projects are set to drive utility for Shiba Inu, which is expected to sustain higher SHIB prices over time, I'm skeptical. There are 16.763 different cryptocurrencies out there, with new cryptocurrencies coming out all the time. Shiba Inu has no competitive advantage that gives her even the slightest chance of long-term survival. UniSwap, a decentralized exchange, and OpenSea, an NFT marketplace, are more developed and show more promise right now than the Shiba Inu community is working on.
Like other token memes out there, Shiba Inu's price fluctuates based on various cycles of social media hype. Additionally, recent rumors, such as its potential listing on the Robinhood Markets app, may trigger a short-term price pop. Obviously, these events are unpredictable, and it is more like gambling than actual investing.