Shiba Inu coin (X.SHIB) has gained serious traction in the crypto community over the past week. The crypto was initially launched to rival Dogecoin and has since been dubbed the “Dogecoin Killer”. The crypto-currency is known for its strong social media following, lead on twitter as the #ShibArmy. Over the past week the cryptocurrency has gained 350%, outperforming its rival, Dogecoin.
How is Shiba Inu coin currently performing?
The coin is closing in on an all time high, currently trading at $0.00003118. The crypto faced a choppy past few months as the initial wave of cryptocurrency hype faded. The initial boom in popularity of cryptocurrency initiated 12 months ago, as investors piled into alt-coins that may be the next “Bitcoin” success story.
The prevalence of bullish sentiment towards Dogecoin earlier this year first shed light on Shiba Inu coin. These “meme coins” which have initially started as a joke have become extremely popular, ultimately driving a higher demand and momentum. As a result, some investors have earned serious returns during these periods of interest. In addition at the current price of Shiba Inu, investors can hold millions of coins without committing too much capital in comparison to trading on the stock market. A common strategy is to buy and hold until the value ultimately rises in the long run, known as HODL.
This Elon Musk tweet may have been enough to recharge Shiba Inu
On October 4, Elon Musk tweeted a photo of his new Shiba Inu breed puppy. On the same day of this tweet, the Shiba Inu price skyrocketed and has maintained momentum over the past 3 days of trading.
Looking at historical prices of Shiba Inu and Dogecoin, they generally have some correlation relationship with Musk’s tweets. According to CoinMarketCap data, the Shiba Inu rally has now boosted its market cap to $12 Billion. Although some have called out Musk on his influence in these markets, the fact is the cryptocurrency does lack regulatory clarity. To make matters more complicated, different countries classify cryptocurrency under different asset classes. The United States classifies crypto currency as a money services business (MSB) that places it under the Bank Secrecy Act. In other countries such as Australia, cryptocurrency is viewed as a asset for capital gains tax purposes.
What are the risks with Shiba Inu coin ?
Firstly, cryptocurrency provides investors with unique risks that are less common in equity markets. As discussed in our Bitcoin article, the integration of a cryptocurrency in corporations is what is exciting Bullish investors. An energy efficient, secure cryptocurrency can provide advantages to businesses therefore driving an increase in demand. However, for “meme coins” such as Shiba Inu the possibility of integration seems less likely. In general terms, this can mean less catalyst events from an integration perspective. In addition, with the asset now at all time highs investors can expect additional volatility as Shiba Inu coin will find its equilibrium.
The information above is presented as factual information and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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