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Should You Buy Shiba Inu? 3 Pros, 3 Cons

Shiba Inu is following in Dogecoin’s footsteps.

The cryptocurrency Shiba Inu (ticker: SHIB) rose several hundred thousand percent since it got a foothold in late January to its peak this week. Some market speculators have made a fortune trading cryptocurrencies in recent years. Top-performing coins include cryptocurrency stalwarts Bitcoin (BTC) and Ethereum (ETH), as well as canine-inspired meme cryptos like Dogecoin (DOGE), Floki (FLOKI) and Shiba Inu. The mind-boggling gains in Shiba Inu are enough to give any investor a severe case of FOMO, or fear of missing out. But before buying into the hype, investors should understand the pros and cons of investing in Shiba Inu.

Pro: Valuable meme crypto brand

There are currently about 13,000 cryptocurrencies in the world, and new currencies are emerging every week. Some of these cryptocurrencies offer significant technological advantages over bitcoin, Ethereum or other top cryptocurrencies. Effective branding is key for altcoins to stand out in large crowds.Shiba Inu has followed Dogecoin’s winning meme friendly branding recipe. During her impressive run, Sheba Anu is trending on social media, and her brand is spreading like wildfire. Without any significant technical advantage at this point, Sheba Ano could grow or die on the strength of her brand in the long run.

Con: Extreme volatility

When any investment skyrockets by this much in less than a year, investors are thrilled. Unfortunately, volatility swings in both directions. For investors looking to trade Shiba Inu for an adrenaline rush or a gambler’s high, the potential for the crypto’s price to crash as hard as it skyrocketed may be part of the thrill. The average holding period for Shiba Inu investors is just 13 days, according to Coinbase. So if the market speculators and momentum traders start to abandon ship all at once, a pullback could snowball quickly, potentially crushing long-term investors.

 

Pro: Shibaswap

One of the ways Shiba Inu developers are attempting to build its community and brand is by creating the Shibaswap . Decentralized exchanges are essentially peer-to-peer exchanges that allow users to trade cryptocurrencies without relying on an intermediary.

Con: Lack of real-world utility

Unlike Bitcoin and Ethereum, Shiba Inu has virtually no advantage for investors outside of a corrupt currency exchange. According to CryptWorks, only 100 global retailers have accepted Sheba Ano as payment. Those shopkeepers are largely obscure, corrupt currency themed businesses.

Pro: Potential Robinhood trading

Sheba Inu has a passionate community of online supporters, and the community is pressuring the popular trading app Robinhood to add Shiba Inu to its shortlist of tradable cryptocurrencies. The Change.org petition demanding Robinhood to support Sheba Anu has received more than 400,000 signatures. Robinhood has not yet commented on Shiba Inu, but reported ge 30 million in revenue from Dogecoin trading in the first quarter of 2021 after adding Dogecoin to its platform.

Con: Musk doesn’t own it

Shiba Inu is just one of dozens of dog-themed cryptocurrencies inspired by the original doge meme. Influential Tesla CEO Elon Musk has been a public Dogecoin supporter, and he even adopted a Shiba Inu puppy named Floki earlier this year. Shiba Inu’s price jumped in October in response to a photo Musk posted of the puppy, but Musk recently disappointed Shiba Inu investors by disclosing that the only cryptos he actually owns are Bitcoin, Ethereum and Dogecoin.

 

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