$SHIB Inu Coin is a cryptocurrency that has been attracting attention since 2021, when it experienced considerable growth. With an active community of supporters, it has a market capitalization of over US$ 16 billion. On the other hand, it also offers several risks to investors.
Is it worth investing in this cryptocurrency in 2024? Read the article below and understand what Shiba Inu is, how it works, advantages, risks and whether it is worth considering it as part of an investment strategy.
What is Shiba Inu?
Shiba Inu is a cryptocurrency created in August 2020 and its name is inspired by the Japanese dog breed of the same name. Like Bitcoin and Ethereum, Shiba Inu operates on a blockchain.
It trades for fractions of a cent and has a current market cap of over $11.09 billion.
Shiba Inu’s main token is SHIB, which is used for transactions within the network. The coin has faced challenges, such as a massive token sale in May 2021, which caused a price drop and concerns about its viability. However, the Shiba Inu community continues to support the coin.
It is considered an alternative to Dogecoin, but seeks to stand out as a serious cryptocurrency with growth potential in the market.
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How does Shiba Inu work?
Shiba Inu operates as a cryptocurrency based on the Ethereum blockchain. It has an ecosystem that encompasses decentralized applications (DApps), non-fungible tokens (NFTs), and smart contracts.
The cryptocurrency is based on the ERC-20 standard, that is, it does not have its own blockchain, but operates on the Ethereum network following the protocol associated with smart contracts on that blockchain.
However, Shiba Inu has launched a second-layer blockchain on Ethereum called Shibarium, where you can stake the Shiba Inu-derived BONE token that is required to transact on Shibarium.
This allows SHIB to be traded on specific platforms such as ShibaSwap, which was created specifically for trading the token. Additionally, it can also be traded on more traditional platforms such as Binance.
🚀🚀 $SHIB Inu and Dogecoin: what are the similarities and differences?😀
Shiba Inu and Dogecoin are two competing cryptocurrencies, with several similarities, but they also have important differences.
Similarities
Both were created as meme currencies on the internet;
They had a rapid appreciation driven by speculation and the viral effect on social media;
They received high visibility in the media and were promoted by influential figures such as Elon Musk;
They have an engaged community of supporters and promise high gains in the short term.
Differences
Shiba Inu (SHIB) is an ERC-20 token on the Ethereum blockchain, while Dogecoin (DOGE) has its own blockchain, using the Proof of Work (PoW) mechanism;
The issuance of new tokens is controlled in SHIB, with a limit of 1 quadrillion, while Dogecoin continues to issue unlimited tokens
Shiba Inu has built a more complex ecosystem, including other tokens such as LEASH and BONE, as well as a decentralized exchange (DEX), its own second layer of Ethereum and an NFT marketplace;
Shiba Inu is expected to become more sustainable and relevant in the long term.
What are the wallets to store Shiba Inu SHIB?
Since $SHIB is an Ethereum-based token, it can be stored in Ethereum-compatible cryptocurrency wallets:
MetaMask
Coinbase Wallet;
Trust Wallet;
Binance;
Atomic Wallet.
When will Shiba Inu rise?
It is not possible to know exactly when Shiba Inu will rise. However, by 2024, experts expect a recovery and even an increase in SHIB prices, based on its operation on the Ethereum network.
It is a crypto asset without great real fundamentals, with a relatively low active user base.
SHIB price movements are mostly the result of speculation.
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Advantages of investing in Shiba Inu
Shiba Inu is a memecoin, that is, a currency created based on a meme — it has no great fundamentals. Its ecosystem, ShibaSwap, NFTs and Shibarium, make it superior to other memecoins.
Memecoins have a lot of attention from retailers and flows into this type of currency can bring relevant appreciation to Shiba Inu.
Risks of investing in Shiba Inu Coin?
It is also important to consider the risks and disadvantages of investing in Shiba Inu Coin. The main ones are:
Shiba Inu Coin is highly volatile and can lead to extreme losses;
The cryptocurrency is in the early stages of development and does not have clear fundamentals to support its value;
Investing in SHIB is still more speculative and risky;
It is not known who the creators of the cryptocurrency are, which can pose a risk, as there is no complete transparency about the intentions and capabilities of the developers;
Shiba Inu Coin (SHIB) has little practical use beyond speculative purposes;
It is still a low liquidity asset;
The price of SHIB is often driven by hype, news and influencers, which can result in irrational and unpredictable price movements.
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Is it worth investing in Shiba Inu Coin?
In our opinion, it is not worth investing in Shiba Inu. It is an asset with few fundamentals, little practical usability and that does not bring a solid rationale for appreciation, except through hype or news flow.
Shiba has been losing ground to other newer memecoins. So, the asset has not even been gaining prominence in its own niche.
