Shiba Inu on the floor and the experts get wet: opportunity or is it a waste of money? | Technology

Shiba Inu on the floor and the experts get wet: opportunity or is it a waste of money?  |  Technology

After the spectacular rise that this cryptocurrency experienced at the beginning of 2021, there are many doubts, after its collapse, that investors arise about a possible or not take off this 2022.

Although Bitcoin and Ethereum accounted for a significant portion of the 2021 market value gains, it was another cryptocurrency that wowed investors and broke records. We are talking about the already well-known Shiba Inu.

This cryptocurrency saw its price skyrocket. Investors had the opportunity to collect SHIB tokens at midnight on January 1, 2021, for a paltry $ 0.000000000073 each. However, less than 24 hours into the new year, those same tokens changed their price to $ 0.000034.

This despite still being a negligible price, represents a growth of 46,500,000%. However, despite all this, just as it rose, it collapsed. There were whales that withdrew huge amounts of SHIBS, putting the market on alert and the price of the coin was gradually falling.

With all this on the table, many investors followed and continue to believe that Shiba Inu’s time has not come to an end yet.

The question that now arises is whether facing this new year, with the current reality of the currency, we can see growth again. As well, to put it in the most direct way possible, no.

There are four key reasons which is why the $ 0.01 price target being broadcast on social media is nothing more than a fantasy from some investors.

First, to highlight, the projects have to offer competitive advantages and differentiation and investors are not going to get any with Shiba Inu.

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The second problem for Shiba Inu, which builds on the previous point, is that has virtually no utility outside of a cryptocurrency exchange. Only 350 businesses worldwide actually accept SHIB as a form of payment.

A third big problem for Shiba Inu is that history is not on your side. In those rare cases where a cryptocurrency has risen 24,000% or more in a very short time, the precedent has almost always been that an equally epic reversal awaits.

In fourth and last place, a price target of $ 0.01 is meaningless. With 549 billion SHIB in circulation, even $ 0.01 would give this project a value of $ 5.49 trillion. That’s roughly twice Apple’s valuation.

Taking all this into account, the hype that this currency is being given again in social networks and a possible approach to $ 0.01 is totally impossible. Not even Elon Musk can trace this.