Ever since this penny token, named after a Japanese breed of dog, entered the crypto scene, it has grown at a staggering rate, catching the attention of investors and enthusiasts alike. It even managed to beat returns from behemoths like Bitcoin and Ethereum.
The coin itself has appreciated by 2,50,00,000% over the past year. An investment of Rs 1,000 in the token would have turned into Rs 25,00,00,000 during the period. However, it is important to note that cryptocurrencies, especially meme coins, are a very volatile investment.
In the past 24 hours, the thirteenth-largest crypto asset has grown by more than 15% and now boasts a market capitalization of just under $19 billion. Shiba Inu traded volume jumped nearly 105%, according to data from Coinmarketcap.
Shiba is an altcoin, which means it is community-based. The success of the coin largely depends on the growth of the community and its utility has a lesser role to play in this, says Raj A Kapoor, Founder, India Blockchain Alliance.
The coin’s latest surge was fueled by a strong rumor that Shiba Inu will likely be listed on Robinhood.
“News that Shiba will be posting on the Robinhood app in February has renewed investor interest in the token. Shiba is maintaining the momentum it witnessed last year,” said Sharat Chandra, vice president of research and strategy, EarthID, a self-sovereign identity management platform.
He, however, advised investors to allocate a small percentage of their portfolio to this token.
Any major listing on a widely adopted exchange is big news. In the months following such events, investors seek to put themselves forward and purchases are heavy.
“It remains to be seen if this latest rumor will come to fruition or if it is just another smoke and mirror attempt to drive up the price of Shiba Inu in the short term. speculative,” Kapoor said.
“It wouldn’t be wise to invest too much money in Shib. The coin can help you earn money quickly, but it is not a reliable long-term investment,” he added.
Investors should understand that Shiba Inu is purely a meme token with no real intrinsic or underlying value and is purely entertainment-based.
Jay Hao, CEO of OKEx, said listing rumors are strong and the growth momentum will depend on how the rumor plays out.
Shiba Inu, introduced in 2020, aimed to be the Ethereum-based counterpart of Dogecoin. It became an overnight sensation thanks to tweets from Elon Musk and Vitalik Buterin.