There is an old saying that "teams make better decisions than individuals," and it appears that the folks at the cryptocurrency ranking platform CoinMarketCap are testing this axiom with a beta test of crypto prices.
CoinMarketCap (CMC) is testing a new feature in which its tens of thousands of community members estimate monthly cryptocurrency prices for the next six months. Since launching last October, the CMC collective has had a 70% success rate. The CMC community is currently predicting that Shiba Inu (quotation SHIB) could see a 40% price pump by the end of April.
Community members can place their personal estimates up to the 21st of the month by visiting the “price estimator” page for any project, and then after that date the consensus price is locked and no more projections are taken. At the time of writing, there have been 34.695 CMC members who have placed their April price predictions for Shiba Inu. The average price point for the token by the end of the month is currently set at $ 0,00003786, which would be a 40,07% increase from the current trading price of $ 0,00002684.
The inherent volatility of cryptocurrencies makes them impossible to predict
The reason CMC is testing a crowdsourced pricing model is because asset prices are driven by fundamentals, techniques and sentiment. CMC's beta test provides a way to sample market sentiment to better gauge the direction of the important role sentiment plays in asset price - especially in a volatile sector like cryptocurrencies.
But this inherent volatility makes the price prediction game impossible, according to market expert, broker and CEO of fintech trading platform Tastyworks, Scott Sheridan. “Until we have clear guidance on which entity will regulate crypto-assets, these products will operate in a sort of Wild West arena. When this happens, you get movements like the ones you are seeing in Shiba, ”Sheridan said in an email response to questions. “Whether Shiba will prove viable or not remains to be seen. In terms of pricing, it is impossible to predict until we will have a liquid options market. But I wouldn't be surprised to see more volatile swings like the ones we're seeing here. "
Love or hate SHIB, the developers are trying to evolve the project
Despite these price swings, the Shiba Inu development team is looking to transform the project into a legitimate and stable digital currency that offers value and utility beyond canine-themed banter. Last week the team had their blockbuster announcement regarding the upcoming launch of SHIB: The Metaverse.
Additionally, its programmers are continuing to work on:
- launch of the Shiba blockchain;
- sold its line of non-fungible tokens (NFTs);
- companion cryptocurrencies for greater usability;
- recently announced plans for a dedicated "Burn Portal" to eliminate trillions of tokens to lower the maximum bid and try to raise the price.
This project has a lot going for it, and maybe it's bitten off more than it can chew - (ah yeah, the canine-themed jokes are the Shiba gift to cryptocurrency writers it keeps giving).
This is not financial advice, and you should always do your research before investing your hard earned funds. Even though the cryptocurrency cabal CoinMarketCap expects a 40% spike for the Shiba project this month, I prefer to focus on whether they can run the rollout of the metaverse and proprietary blockchain. Any of these milestones would be a more reliable indicator.
