INTRODUCTION
Shiba Inu is a token that was created on the Ethereum blockchain and exists as an ERC-20 token. In this subsection of the Shiba Inu (SHIB) Coin Guide let's look at the pros and cons associated with this meme token, which has become somewhat of a social phenomenon.
PROS CONCERNING SHIBA INU:
- Shiba Inu has a very low price for entry. At the time of writing this subsection of the guide (July 21, 2021 @ 12:30 Eastern Daylight Time), Shiba Inu is priced at $0.000006781. Why is this important? Price of a token is extremely important if you are planning on tracking the percentage gained or lost on your investment. It can be used as a predictive tool allowing a user to calculate potential gains (or possible losses) in making their investment decision.
- Likewise, this low price allows the investor to realize huge profits from a very low investment price. At today's price, 1 million Shiba Inu would cost a potential investor a mere $6.78. If the price of Shiba Inu was to reach a possibly realistic value of a mere $0.01, the initial investment of $6.78 returns a gain in the sum of $10,000.
- Because of the low price attached to the Shiba Inu token, the market volume for the token should be active. This high volume of market activity could produce price increases both in the short and long term.
- Per CoinMarketCap the market capitalization for Shiba Inu is $2,661,633,135 and its fully diluted market capitalization is $6,652,626,638. As such, Shiba Inu is classified as a mid-cap token. Why is this important? Being a mid-cap token means that Shiba Inu is battle tested as it has survived and passed through the small-cap category.
- Being a mid-cap asset gives Shiba Inu exposure in the financial media. This fact, coupled with the higher trading volumes mentioned above could possibly drive interest in this investment pushing the short term price higher.
- Being an ERC-20 token and trading on the Ethereum blockchain exposes the Shiba Inu token to over 100 million potential users.
- Vitalik Buterin (one of the founders of Ethereum) burned 50% of the total supply of Shiba Inu. After doing this, Shiba Inu locked the remaining supply in Uniswap providing the token greater exposure and volume activity.
- Shiba Inu has exhibited striking trading volumes. This can be inferred to represent that Shiba Inu's long term investors retain their hopes for the future of this token
- Shiba Inu is listed on several top-named exchanges such as Binance, OKEx, FTX, WazirX, Huobi Global, eToro, and KuCoin.
- If you are a seasoned investor and have knowledge of the various financial metrics, due to the price volatility of Shiba Inu, the potential for high short term gains is possible.
- Shiba Inu, in July of 2021, launched its own Decentralized Exchange known as Shiba Swap. This move by Shiba Inu's developers demonstrates their intent to move it beyond a mere meme token and transform it into a serious cryptocurrency.
CONS CONCERNING SHIBA INU:
- The market for meme based coins/tokens is highly saturated. Plus, when the term 'meme coin' is used, the majority of cryptocurrency investors will immediately identify the term with Dogecoin, not Shiba Inu.
- The current status of Shiba Inu within the search engine sphere is confusing. Just try an search 'Shiba Inu' on Google. From experience this search gets you pictures and articles about the Japanese Dog, not the cryptocurrency. This confusion is no help to the token's future. (A hint, to get blockchain articles on Shiba Inu, add 'crypto' or 'coin' to your search.
- Due to a present lack of innovation, Shiba Inu is likely to remain an ERC-20 asset for the foreseeable future. By remaining on the Ethereum blockchain subjects Shiba Inu to all of Ethereum's faults - slow processing times, high transaction fees, and the like.
- Shiba Inu lacks a robust infrastructure requiring it to be termed an ordinary cryptocurrency. This basic structure is proven by the fact this token in essence adds nothing to the cryptocurrency environment. Being nothing more than a transactional cryptocurrency pits it against some stiff competition in the space such as Bitcoin, Ethereum, Stellar-Lumens, and even Dogecoin, for examples. The competition present may cause people to stay away from using Shiba Inu in favor of the more established alternatives.
- Shiba Inu's limited uses give it little in the way of intrinsic value.
- Unless you are a savvy and experienced cryptocurrency investor the price volatility of Shiba Inu could lead you to significant losses. Market entry and exit timing is the key to deriving profits from investing in this token.
- Shibaswap is a definite liability for Shiba Inu. On July 8, 2021, the platform reviewer DeFi Safety scored the ShibaSwap protocol a mere 3%. To receive a passing grade from DeFi Safety a platform must score 70% or more. The Twitter notice of this from DeFi Safety follows:
- The Shiba Inu token is still relatively new. While there has been a great deal written about the token, a quick review of these articles demonstrates a serious lack of credible information concerning Shiba Inu.
- Due to the 'newness' of the Shiba Inu platform, investing in the token is highly speculative at best. To assure it's position, it will be required to continue the momentum gained at it's launch, which is, in fact, an uncertainty on it's own.
CONCLUSION
The preceding lists of pros and cons are presented for educational purposes only. They should not be considered investment advice. As always, before investing any of your hard earned assets, do your own research diligently. And remember, especially with a speculative token like Shiba Inu, never invest more than you can afford to lose.