- Shiba Inu has lots of positives, including staking, multiple exchange listings, and a strong community.
- Investors need to be aware that this is a meme coin, and has very little utility.
- For risk-takers, there is a huge potential upside.
Shiba Inu (SHIB) is the 15th largest cryptocurrency by market capitalization. The meme coin that came into existence to counter Dogecoin’s rising prices in 2020 now has an impressive market capitalization of $11 billion.
In the past year, it was one of the top crypto performers and rallied by thousands of percentages in the Bull Run that peaked in May and later in October. It has since then corrected in price.
This means Shiba could prove to be a huge bargain for long term investors who are willing to look beyond its flaws. Here are three reasons to buy Shiba Inu, and one reason to sell it.
No. 1 Reason to Buy: Shiba Inu Staking That Has a 6-month Lockup
When it first entered the market, Shiba Inu had nothing but hype backing it up. However, it has since made significant steps that have added to its intrinsic value.
Besides the exchange function, this DEX allows for the staking of Shiba Inu. The best aspect to Shiba Inu staking is that there is a 6-month lockup for staked coins.
The advantage of this is that it takes a lot of Shiba Inu out of circulation, and that is good for its demand and supply dynamics.
Besides slowing down the supply of Shiba Inu, it has the potential to draw in new investors to Shiba Inu long term.
That’s because staking has emerged as one of the best ways to make money off cryptocurrencies. It is particular an interesting factor for Shiba for a couple of reasons.
First, it is a highly volatile crypto since it is a meme coin. Therefore, with the staking feature of this crypto, it is easy for investors to minimize the risks that come with highly volatile cryptocurrencies.
That’s because, while an investor can lose when the crypto drops in value, they can recoup some of that value from the staking rewards.
Staking Shiba Inu is likely to draw in lots of investors who may not have the resources to stake the bigger coins. For instance, to stake Ethereum at current prices, one needs hundreds of thousands of dollars.
This is not within the reach of many investors. The same can be said of many of the other top cryptos that allow staking.
With Shiba Inu, this is not the case. That’s because it is so nominally cheap that with just as low as $100, one can buy and stake millions of coins.
For most people that are just getting into crypto and want to stake, Shiba Inu is likely to be among the cryptos that they choose going into the future.
This coupled with the fact that it has a very vibrant community gives this crypto a lot of potential for value growth going into the future.
No. 2 Reason to Buy: It Has a Strong Community Behind It
The community behind a cryptocurrency is important to its long term growth. That’s because the market is saturated with projects of all kinds. So far, there are more than 17,100 cryptocurrencies in the market, and this number is growing.
As such, a project without a strong community may find itself buried in this sea of cryptos, and possibly die out.
Shiba Inu does not have this problem. Despite being a relatively new cryptocurrency, Shiba Inu has built a strong following that rivals that of top cryptos such as Dogecoin, XRP among others.
SHIB achieved this because of how it positioned itself from the word go. It came to the market just when the Dogecoin hype fueled by Elon Musk was gaining traction. It then positioned itself as the Dogecoin killer and most investors looking for the next Dogecoin bought it in droves.
This hype has remained strong despite the dip in price over the last couple of months. On major social media platforms, and even on YouTube, there is a lot of hype around Shiba Inu.
Such hype will play into this crypto’s favour long term for a number of reasons. First, now that a lot of new investors are getting into crypto, the visibility of this crypto will play a role in drawing them in. This is evident in its high volumes.
The best part about having a strong community is that once Shiba Inu turns bullish again, it will have a huge role in creating FOMO through social media and other platforms.
It is a factor that could easily see this crypto make new highs within a very short time, as buying pressure from new money outstrips supply.
Check Out: Pros and Cons of Investing in Shiba Inu Coin
No. 3 Reason to Buy: Shiba Inu is Available On Multiple Exchanges
Despite being a relatively new crypto that is only a year old, Shiba Inu has managed to get listed on many major exchanges.
It is listed on Binance, Huobi Global, Kucoin and more than ten other exchanges. There are lots of advantages that come with being listed on major exchanges. One of them is credibility.
Top exchanges have a reputation to maintain, and cannot risk it by listing shady cryptos. This is evident in the fact that Binance regularly delists coins and tokens that do not meet the necessary criteria for them to stay listed.
In essence, Shiba Inu’s multiple listings by top exchanges makes it attractive to investors who are looking to experiment with high volatility cryptos.
Investors are sure that while Shiba Inu may be speculative and highly volatile, it is a legit crypto.
This will help drive demand as the crypto bull run returns and could play a role in Shiba Inu testing new highs long term.
There is also the aspect of volumes. Due to its multiple listing, Shiba Inu has high volumes, which means buying and selling it is easy. This is a huge factor, especially in attracting long term investors.
It’s a factor that could see its value rally long term.
One Reason to Sell Shiba: Meme Coins Have Little Utility Value
Shiba Inu is a meme coin, and these coins popularity is based on nothing but community hype. This means there is a risk of Shiba Inu losing relevance once the hype dies out.
This is a risk, especially now that cryptos that have real utility are showing signs of giving significant gains. For instance, Ethereum and Cardano have a lot of good news coming up, and could eat into the volumes of meme coins.
Shiba Inu is one of the most volatile meme currencies. After reaching a high of 0.000038 in May the cryptocurrency dropped by more than 370% to 0.000008 in just 10 days, which resulted in losses for investors who bought the cryptocurrency at its high. Every cryptocurrency investment is risky. But you put your funds at even greater risk when you hop onto and invest in a digital currency whose value is derived primarily from social media buzz.
Here’s The Bottom Line
Shiba Inu is a unique crypto that offers investors potential for growth going into the future. However, there is a risk that it could stagnate going into the future and underperform Bitcoin.
However, this crypto also has the potential to go parabolic in a very short time. This potential upside makes Shiba Inu an interesting cryptocurrency for bold investors.
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