Shiba inu is a new cryptocurrency that has similarities to the famous Doge Coin, SHIB was created by an anonymous developer named Ryoshi in August 2020. This crypto is on the spotlight as its value has risen.
What’s Dogecoin and Why Its Related to Shiba?
This is a cryptocurrency originally made as a joke, but it is actually one of the altcoins whose value has risen 800% in 24 hours. It continued moving up until it reached 0.45 dollars in April 2021 and it was promoted by celebrities like Elon Musk, Snoop Dogg and Gene Simmons till it reached 0.72 dollars per token.
Right now, dogecoin is not as valuable but its volatile potential being a meme make it an interesting investment. Since its creation has risen 11000%.
Shiba is basically a parody of a parody since its based on the Doge coin design of being a meme. And it has surpassed the 11000% growth in just 30 days.
Vitalik Butering cofounder of Ethereum, was the owner of 1 billion dollars’ worth of Shiba coin and since it was a gift, he donated this amount to a charity fund to help Covid-19 treatment in India.
NFL Star Antonio Brow also made public that he invested in this crypto and thinks that cryptocurrency is the way to properly invest.
A Volatile Cryptocurrency
This rival of dogecoin has a market cap pf 2.68 billion USD and it has been falling 20% last week but it rose 9.5% on the last couple of days.
This volatile aspect of the coin (even considering that it is a meme altcoin) is due to its anonymous creator. The analysts consider that this is a bad signal for investors since its legitimacy and value its affected.
One of the ways investors protect themselves is to investigate the developers of an alt coin. Since trust and the market sentiment affect the value, it possesses.
Last week the whole market experienced a dip of about 14% but it has recovered in the last couple of days. And Shiba is one of the most traded currencies this week only surpassed by Bitcoin and Ethereum.
Its popularity rose so much that even groups are making petitions to brokerage platforms like Robinhood to include the cryptocurrency into their system.
Since the creation of this cryptocurrency its very much like the one of dogecoin people expect that their investment explodes in profit. This is because the implication of dogecoin and robin hood in game spot’s case made new millionaires on the matter of hours.
People should be wary that behind the creation of dogecoin were some reputable developers that have worked on Adobe Systems and helped develop Litecoin. That means that this coin’s situation its very different.
These meme coins or doge killers like Shiba and Coshi and other emerging coins have an investment value in their first stages of development since they can rise their value three or four times over the initial investment. But as a long-term investment its better to stick to the regular, well-reputed altcoins.