Shiba Inu is a crypto token that is widely considered a meme coin. A few days ago, it landed in the list of the top 10 most valuable digital assets in terms of market value.
In the process, SHIB’s market capitalization reached almost $40 billion, surpassing that of Dogecoin (the token’s alleged cousin and role model). The value of the Shiba token recently increased by another 10%, having already doubled in recent weeks.
If you want to find more details about Shiba Inu and how it made it in the list of the top 10 most valuable cryptocurrencies in the world, download for free our companion app. The Born2Invest mobile app brings you the most important financial news in the world so you can stay informed.
Shiba Inu is a high-risk bet
Despite the spectacular gains, each token costs only a fraction of a cent. To paint a clear picture: If you bought $1,000 worth of Shiba tokens two months ago, the 20 million coins are now worth about $9,000.
Shiba Inu, like all other digital tokens, is not ideal for commercial transactions. Why, in fact? Because cryptocurrencies are volatile and highly speculative.
Experts consider the token a high-risk bet and warn investors not to invest in Shiba. The people behind the token remain unknown. Many also doubt whether the token really has any functional use.
According to Lee Reiners, a professor at Duke University School of Law and crypto critic, Shiba Inu’s recent meteoric rise is no surprise: “This is what happens when you speculate massively on assets with no intrinsic value.”
SHIB is the current rage among cryptocurrencies
The story of the Shiba Inu token is similar to both Bitcoin and GameStop. This year, Bitcoin‘s valuation doubled, only to drop sharply in between. Now, the most popular cryptocurrency is trading for about $63,000 per coin.
In early January, GameStop’s stock was valued at $17 before rising to a staggering $483 per share. Currently, the stock is trading at a steady price of $180.
While Shiba Inu is the current rage among cryptocurrencies, it cannot yet be traded on most broker platforms. Investors have petitioned Robinhood to allow the broker to trade Shiba Inu (Dogecoin, as well as many other crypto tokens, are listed on the platform).
Vladimir Tenev, CEO of Robinhood, assured investors last week that the company plans to launch new coins.
Before doing so, however, Tenev said it wants to make sure it is done “in a way that is safe for customers and complies with regulatory requirements.”
The introduction of stricter regulations for cryptocurrencies seems inevitable, but it’s unclear how that will happen. Gary Gensler, the chairman of the SEC, recently compared cryptocurrencies to the “Wild West.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Boiron Enters the Medical Cannabis Business
Boiron is counting on cannabis to restore his health. The change was announced on the BFM Business TV channel. It's...
Tech Innovation Is about to Takeoff: Get Ready for It with XRApplied
While most of us grew up bearing witness to a tremendous pace of tech advancements, things seem to have stagnated...
Glen Invest, the Moroccan Investment Company Set Up in Casablanca
Glen Invest's priorities for the region are clear. They concern investments in the processing industry for mass consumer goods, "with...
Why Are Syncrude, Ledcor Group, and Ekati Mines So Excited about Triad Pro Innovators’ New EEL Diesel Hybrid Genset?
It's understandable if the words ‘diesel hybrid genset' don’t get your heart racing. But what if we throw in an...
New Strategy, New Brand: The Secret Re-Start of Exporo
According to information of Finanz-Szene.de, the strategy turn and the internal reorganization are also a consequence of difficulties, which Exporo...
Crypto2 weeks ago
Satispay and Young Platform Team Up to Simplify Cryptocurrency Purchases
Biotech2 weeks ago
Rethinking DMT: Algernon Pharmaceuticals’ Novel Approach to Stroke Treatment
Business2 weeks ago
Before the Metaverse: Augmented Reality in Education
Featured2 weeks ago
Why Soybeans and Soybean Oil Closed Lower