Should You Buy Shiba Inu? 3 Pros, 3 Cons

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Should You Buy Shiba Inu? 3 Pros, 3 Cons Shiba Inu is the latest skyrocketing altcoin. Shiba Inu is following in Dogecoin’s footsteps. The cryptocurrency Shiba Inu (ticker: SHIB) rose several hundred thousand percent since it got a foothold in late January to its peak this week.Some market speculators have made a fortune trading cryptocurrencies…

Should You Buy Shiba Inu? 3 Pros, 3 Cons

Shiba Inu is the latest skyrocketing altcoin.

Shiba Inu is following in Dogecoin’s footsteps.

The cryptocurrency Shiba Inu (ticker: SHIB) rose several hundred thousand percent since it got a foothold in late January to its peak this week.Some market speculators have made a fortune trading cryptocurrencies in recent years.Top-performing coins include cryptocurrency stalwarts Bitcoin (BTC) and Ethereum (ETH) , as well as canine-inspired meme cryptos like Dogecoin (DOGE), Floki (FLOKI) and Shiba Inu.The mind-boggling gains in Shiba Inu are enough to give any investor a severe case of FOMO, or fear of missing out.But before buying into the hype, investors should understand the pros and cons of investing in Shiba Inu.

Pro: Valuable meme crypto brand

There are currently roughly 13,000 cryptocurrencies in the world, and new ones are popping up every week.

Few of these cryptocurrencies offer meaningfully differentiated technology advantages over Bitcoin, Ethereum or other top cryptocurrencies.To stand out in the massive crowd of altcoins, effective branding is key.

Shiba Inu has followed Dogecoin’s winning meme-friendly branding recipe.Throughout its spectacular run, Shiba Inu has been trending on social media, and its brand has been spreading like wildfire.Without a significant technological advantage at this point, Shiba Inu may thrive or die in the long term largely on the strength of its brand.

Con: Extreme volatility

When any investment skyrockets by this much in less than a year, investors are thrilled.Unfortunately, volatility swings in both directions.For investors looking to trade Shiba Inu for an adrenaline rush or a gambler’s high, the potential for the crypto’s price to crash as hard as it skyrocketed may be part of the thrill.

The average holding period for Shiba Inu investors is just 13 days, according to Coinbase .So if the market speculators and momentum traders start to abandon ship all at once, a pullback could snowball quickly, potentially crushing long-term investors.

Pro: Shibaswap

One of the ways Shiba Inu developers are attempting to build its community and brand is by creating the Shibaswap decentralized exchange .Decentralized exchanges are essentially peer-to-peer exchanges that allow users to trade cryptocurrencies without relying on an intermediary.Shiba Inu is one of three cryptos in the so-called Shiba ecosystem.Shibaswap users can also stake their crypto to generate yield, similar to interest paid on a savings account.Shibaswap users can even track their returns in their “bonefolio” and trade more than 10,000 unique dog-themed nonfungible tokens that have a wide range of traits and rarities.

Con: Lack of real-world utility

Unlike Bitcoin and Ethereum, Shiba Inu has virtually no use for investors outside of a cryptocurrency exchange.

Shiba Inu is accepted as payment by only about 100 global vendors, according to Cryptwerk.Those vendors are largely obscure, cryptocurrency-themed businesses.There’s nothing unique about Shiba Inu’s fees, transaction speed or structure to make it more useful or practical than hundreds or thousands of other cryptos.

In fact, popular “The Big Short” investor Michael Burry recently called Shiba Inu “pointless.” Burry took particular issue with Shiba Inu’s supply of 1 quadrillion coins, suggesting the massive supply limits potential price appreciation.

Pro: Potential Robinhood trading

Shiba Inu has a passionate community of online supporters, and the community has been pressuring popular trading app Robinhood to add Shiba Inu to its short list of tradeable cryptocurrencies.A Change.org petition calling on Robinhood to support Shiba Inu has gained more than 400,000 signatures.Robinhood has yet to comment on Shiba Inu, but it reported $30 million in revenue from Dogecoin trading in the first quarter of 2021 after adding Dogecoin to its platform.

The financial incentive for Robinhood to add Shiba Inu trading may eventually prove too much to resist if the crypto’s popularity continues to grow.

Con: Musk doesn’t own it

Shiba Inu is just one of dozens of dog-themed cryptocurrencies inspired by the original doge meme.Influential Tesla CEO Elon Musk has been a public Dogecoin supporter, and he even adopted a Shiba Inu puppy named Floki earlier this year.Shiba Inu’s price jumped in October in response to a photo Musk posted of the puppy, but Musk recently disappointed Shiba Inu investors by disclosing that the only cryptos he actually owns are Bitcoin, Ethereum and Dogecoin .For investors looking for the top dog in meme cryptocurrency land, Musk’s Dogecoin endorsement may be bad news for Shiba Inu investors.

Pros and cons of buying Shiba Inu:

– Pro: Valuable meme crypto brand.

– Con: Extreme volatility.

– Pro: Shibaswap.

– Con: Lack of real-world utility.

– Pro: Potential Robinhood trading.

– Con: Musk doesn’t own it.

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