The wild side of cryptocurrencies is far from being tamed, quite the opposite of what could be said of the breed of dog that inspired two digital assets: the Shiba Inu meme token and dogecoin. The bets on these two meme cryptos (dogecoin and Shiba Inu), which were born as a joke, have placed them among the 10 cryptocurrencies with the highest market value.
Like bitcoin and other cryptocurrencies, the origin of the Shiba Inu is not attributed to a person. In his report describing the protocol used – known as the “Woof paper” – he points out that the cryptocurrency was launched in August 2020 by a person or group known as “Ryoshi”. In short, the project seeks to “throw out the long-established paradigm” and start a “revolution.” Even in this document the Shiba Inu is recognized as an “experiment in decentralized spontaneous community building”. These words have managed to gather enough people to make their presence known on social networks through the hashtag #ShibaArmy, as the introduction to the Shiba Inu report concludes.
Unlike bitcoin, this cryptocurrency (Shiba Inu meme token) does not have its own blockchain and runs on Ethereum technology. Which explains the next point: 50% of the total 1 trillion Shiba Inu created were deposited to Vitalik Buterin, co-founder of the Ethereum blockchain. The other half was deposited on the decentralized cryptocurrency exchange Uniswap. Shiba Inu, which emerged as a mockery of dogecoin, ranks ninth with $37.319 million in market value. Under this cryptocurrency, dogecoin was located, which accumulated US$36,127 million, according to data collected by the specialized site Coinmarketcap.
Even with their meteoric rise, both are far from crossing the dollar per asset. For example, the Shiba Inu meme token climbed 932% over the past month. However, its price is just a small fraction of a hundredth of a dollar with four leading zeros (0.000074, at the close of October). Why has the price gone up?
Despite having a very active community, including tycoons like Elon Musk, and the recent rise in market value, like dogecoin, Shiba Inu is considered by analysts and traditional fund managers as mere speculation.
A good part of this argument is justified in the evolution of its price. Last May, it was enough for Musk, a kind of “guru” among crypto fans, to talk about the cryptocurrency for the price to go up and down like a roller coaster. But other reports highlight that part of the boost in recent performance is also explained by the fact that the meme token dogecoin’s rival asset debuted on platforms where a greater number of people trade this type of assets, such as Coinbase and Binance. Still, it is difficult to pinpoint the exact reason for the behavior of the cryptocurrency. In the words of US Securities and Exchange Commission Chairman Gary Hensler to Yahoo Finance, it’s “a bit like the Wild West.”
This is not the first time that financial regulators have used this expression. The truth is that the community that follows these alternative cryptocurrencies, such as the meme token Shiba Inu, remains active and does everything possible to drive the market price.
For now, the future of this type of cryptocurrency that attracts the attention of celebrities and tycoons is not entirely clear. The warnings of a bubble do not stop, as does the enthusiasm of his followers. The price fluctuation of Shiba Inu and other meme tokens can be kept track of at Hokkfinance for getting better insight into cryptocurrencies.