Why Investment Experts Flags Shiba Inu as Prices Surge
Investment experts are warning investors of the dangers of one of the latest cryptocurrencies to hit the market called Shiba Inu warning that it should be avoided at all costs. The warning comes as crypto fans are on the hunt for the next success story to follow bitcoin.
Because buying cryptocurrencies, like any investment, is a risky business and making money is never guaranteed investors need to be prepared to lose what they put in. Cryptocurrencies are also highly volatile, so the value of investments can go down as well as up in the blink of an eye.
For starters, experts warn potential investors not to invest money in something you don’t understand. So on Shiba Inu, it is difficult to know whether it’s legitimate.
According to its website, they’re cryptocurrency tokens and allow users to hold trillions of them.
This is because Shiba tokens are listed and incentivised on ShibaSwap, its own decentralised exchange. The tokens feature the same Shiba Inu dog as Dogecoin, which has rocketed in popularity recently.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun earlier this month: “The Shiba Inu coin appears to have been created just to give Dogecoin a run for its money.
“It features the same dog which became a meme, and aims to replicate Dogecoin’s success of turning a joke into a money making machine.”
This is something to be aware of when you’re considering its legitimacy when making an investment.
The Shiba token website said: “Nicknamed the DOGECOIN KILLER, this ERC-20 ONLY token can remain well under a penny and still outpace Dogecoin in a small amount of time (relatively speaking).”
The value of Shiba Inu is currently sitting at $0.00000977, compared to a lower $0.0000006 in mid-April, according to CoinMarketCap.
Shiba Inu hit its peak of $0.000036 on May 10 but has since dropped to its current level. It’s up by 18% over the past 24 hours.
In comparison, Dogecoin is currently worth $0.35 – down from $0.60 earlier this month. The value of Dogecoin initially surged thanks to celebrity backing, while a bunch of Reddit threads also called for it to hit a value of $1 per coin.
However, it has dived in recent weeks following a crackdown on cryptocurrencies in China.
There is also no guarantee that you can convert cryptoassests back into cash, as it may depend on the demand and supply in the existing market add to that, the fees and charges may be higher than with regulated investment products.
Cryptocurrency firms aren’t regulated in the way that other financial firms are. This means that you won’t have any protection if things go wrong.
Ms Streeter said: “Investors should treat trading in crypto currencies with extreme caution, and dabble at the edges of their investment portfolio, only with money they can afford to lose.”
While Nigel Green, chief executive of deVere Group, added: “Extreme caution should be exercised before investing in untested cryptocurrencies.
“The price swings can be expected to be wild and there’s a legitimate risk that investors could get burned.
“There are major differences between the likes of Bitcoin, which runs on cutting edge tech and has a limited supply giving it scarcity value like gold, among other valuable attributes; and unknown digital tokens which seemingly have no inherent value.”