Is Shiba Inu a Scam Coin?
Shiba Inu (SHIB) is what is considered a meme coin (it's actually a token), just like it's predecessor, Dogecoin. Let's refer to a helpful resource called isthiscoinascam.com to help determine the validity of this project.
As shown below, Shiba received a “Good” grade with an 88% profile completion score, but it also received a 63% Project Safety Score with a couple major flags.
By the strictest interpretations, Shiba Inu is not a straight up scam. You can actually purchase Shiba Inu, hold custody of the token, and sell it at your own discretion. So yes, it is a cryptocurrency you can purchase that won’t outright steal your money or drain your wallet.
Humble Beginnings
Shiba is a derivative of the meme token DogeCoin, and like Doge, held no use-case outside of its humor/meme-related value. Shiba was founded by “Ryoshi”, an anonymous founder who to this day has yet to be revealed.
Ryoshi's last blog post was in May 2021, and since then he has never been heard from again. It seems pretty convenient that Ryoshi is anonymous considering there was a wallet with 4 Billion USD worth of $SHIB contained inside of it.
Ryoshi famously sent Vitalik Buterin half of Shiba’s total supply back in 2021. Buterin then donated 90% of his $SHIB holdings to the Covid-Crypto Relief Fund in India, which at the time was worth $1 Billion USD.
Buterin pledged to donate the remaining 10% to a charitable organization with similar values. Vitalik is often commended for his decision to donate his $SHIB tokens to the Covid-Crypto Relief Fund.
This donation also removed half of the supply from Shiba, which eventually translated into an 1145% increase in the tokens' price, moving it from $0.00000713 to $0.00008885.
Shiba's exchange rate peaked on October 28, 2021, yet, by Dec 1st of that same year, the tokens' price fell by 80%. SHIB never recovered from that initial 80% dip, and today it is down over 500% from its all-time high.
If investors bought Shiba anytime before mid-October 2021, that was indeed good timing. Anyone who bought it on or after October 28, 2021, hopefully they can still salvage that investment.
Owning a Home vs SHIB
Why is owning a home a good investment? It is because there is a finite amount of land and people will always need a place to live. If you properly maintain your home and the housing market is up, you are likely to sell your home for a profit, sometimes even a considerable one.
The demand for homes makes sense since people need a place to live, and in growing cities, more people competing for the same finite number of homes raises mortgage and rent prices.
This brings us to the question of, "Why would someone own SHIB?" The token offers little to no utility outside of its potential value in the future. Investors mainly purchased it based on speculative gain.
The founders of SHIB kept a significant portion of the supply from the public so they could sell their assets when the price shot up. This is how Goblintown NFTs made profits, despite running a free mint.
Can't argue with development
A large community called #ShibArmy is alive and well today. Announcements like the one below are quite exciting developments within the SHIB ecosystem.
The official & exclusive #ShibaEternity Players Guide will be released November 2nd, on Día de los Muertos. This massive 1000+ page booklet details Shib's CCG game, original lore and incredible art! Stay tuned #ShibArmy!
— Shib (@Shibtoken) November 1, 2022
Game download links pinned to our @Shibtoken profile. pic.twitter.com/DejZTplJuu
Shiba Inu's community is quite large, as is the Dogecoin community. It is easy to get behind something cute such as a little Shiba Inu dog, but is it worth it? Well, if that question was asked to the Shiba community, the answer would be a resounding yes.
Is there potential for this coin to go up in value in the future? Sure, just like any other altcoin, is could rise up higher that it's ATH, especially if Bitcoin goes above and beyond it's past ATH.
Conclusion
To conclude, Shiba Inu (SHIB) is not a scam. Even though the creator is anonymous, so is Bitcoin's creator, whoever Satoshi Nakamoto is. Crypto by nature is anonymous, so discovering that a particular crypto's founder is also anonymous is pretty much par for the course.
Thank you for joining us today on this episode of Cindicator Pulse.
As always, remember... Keep your fingers on the Pulse!
Video on Shiba Inu
FAQs
Is Shiba Inu a Scam Coin?
Shiba Inu is not a scam coin (smart contract), if you purchase Shiba Inu (from the correct address) you will be able to gain custody and eventually sell your Shiba Tokens. However, Shiba Inu offers no legitimate use case and its price action may never come close to its former glory.
Who created Shiba Inu?
The founders of Shiba Inu are anonymous and to this day we do not know who founded the project.
What does the future hold for Shiba Inu?
Shiba Inu will always hold a place in cryptocurrency lore, however, its best days seem to be behind it. We don’t endorse chasing meme coins for speculative plays. Shiba, among many cryptocurrencies, is a game of financial hot potato and you don’t want to be anyone’s exit liquidity.
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Author:
Ken Melendez
✍️ Head of Content @ Cindicator
📊 Certified Bitcoin Professional
🔐 Blockchain Chamber - Chapter President
Who is Cindicator?
Cindicator is a world-wide team of individuals with expertise in math, data science, quant trading, and finances, working together with one collective mind. Founded in 2015, Cindicator builds predictive analytics by merging collective intelligence and machine learning models. Stoic AI is the company’s flagship product that offers automated trading strategies for cryptocurrency investors. Join us on Telegram or Twitter to stay in touch.
Disclaimer
Information in the article does not, nor does it purport to, constitute any form of professional investment advice, recommendation, or independent analysis.