Shiba Inu coin: Analyst warns new doge-token has ‘no real purpose’ – won’t beat Dogecoin
Bizarre teaser for Bitcoin parody Dogecoin
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Shiba Inu (SHIB) is trading well below the level of Dogecoin (DOGE) today (May 12), but holders have already experienced massive gains earlier this year. SHIB is exchanging hands for £0.000014 ($0.00002015) at 7.40pm BST, according to the latest Coinmarketcap data. The virtual token is down nearly 40 percent in the last 24 hours, in a market that has seen red almost entirely across the board.
The global crypto markets are down more than four percent today and even Bitcoin holders are feeling bearish with BTC down nearly five percent.
Dogecoin has also felt the retreat, with plans to push the memecoin past the elusive £0.71 ($1) barrier looking increasingly unlikely.
Coinmarketcap data at 7.44pm BST shows DOGE is down 13 percent, and trading for £0.32 ($0.4449).
Shiba Inu, the self-proclaimed “Dogecoin Killer” has spiked this year by more than two million percent, presenting a potentially lucrative investment option for crypto amateurs.
The token was up more than 2,000 percent this week alone, thanks to a concentrated effort to push SHIB past £0.0071 ($0.01).
And despite the latest dip, traders seem undeterred with social media flooded with calls to “buy the dip” and to hold on for dear life.
If SHIB weathers the storm, there might be more room for profit further down the line.
But this is also one of the biggest dangers and pitfall Shiba Inu owners face, a crypto expert has claimed.
And though both coins feature a smiling Shiba Inu dog as their mascot, some experts believe only one of these tokens is a serious proposition for long-time crypto enthusiasts.
Dogecoin ‘is pure speculation and will end badly’ says Yusko
According to Antony Portno, Founder of Traders of Crypto, SHIB is only one of many altcoins hoping to ride the tailcoats of Dogecoin’s success.
Unfortunately, this makes SHIB an incredibly volatile and potentially explosive investment option.
The crypto expert said: “While DOGE was around for many years and has some actual merit as the one ‘fun coin’, Shiba Inu is a far more manipulative and cynical asset.
“It again has no real purpose or use case other than to make the founders money and has been created with a huge supply allowing for a very low price per coin in the hope that people who don’t understand these things will think it’s cheap relative to DOGE.
“It’s also very unclear who is behind the coin and what the circulating supply is which are both red flags to any sensible investor.
“Whilst it is good to see cryptocurrency breaking new boundaries and coming into the mainstream, it is important to make sure you make educated decisions on whether to invest and it is hard to see the benefits that come with the Shiba Inu coin.”
Whether you are looking to buy your first cryptocurrency or are looking to diversify your portfolio, you should consider the risks involved.
The crypto markets are very volatile and mostly driven by speculation.
This makes any investment on your part a big risk.
You should never invest more money than you are prepared to lose.
The official position of the Financial Conduct Authority (FCA) is that cryptocurrencies are an all-high risk and speculative investment.
The FCA said: “If you invest in cryptoassets, you should be prepared to lose all your money.”
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