Shiba Inu (SHIB) was the flagship token of the memecoin-craze that took place early 2021, producing incredible gains and unprecedented growth over a short period of time. Despite its ups and downs, some argue that SHIB still has a lot of potential, and so today we’ll take a look at how the token that has made numerous millionaires can skyrocket once more.
Let’s begin by bringing everyone up to speed about one of the world’s most popular memecoin, Shiba Inu (SHIB). At its core, SHIB is an ERC-20 compliant token that launched on Ethereum a few years back without any intrinsic goal, value, backing project, or utility. The purpose of Shiba Inu was essentially to compete with the then-king of memecoins, Dogecoin (DOGE), and use its characteristics to rise in valuation the way DOGE did before.
Shiba Inu’s strategy has seemingly worked out, as the token picked up pace after a lackluster first few months and soon landed a solid position among the top cryptocurrencies by market cap. This could have been caused by many things, but donating 50% of the total SHIB supply to Vitalik Buterin who essentially burnt almost all of it is an aspect that many argue definitely helped SHIB on its journey.
Let’s stop for a moment and actually take a closer look at what a memecoin really is. In general, a memecoin is a crypto token that does not have any intrinsic value, goal, or utility, and is not backed by any reputable project or ecosystem. Instead, it’s created only for fun, and to prove a point within its scope. In Shiba Inu’s case, the scope is the popular dog-theme that Dogecoin (DOGE) has started years back, and the point to prove is that cryptocurrencies do not necessarily need a utility, serious backing, or intrinsic value to win investors’ hearts.
Nevertheless, the ultimate remains the same: what’s next for SHIB? Unfortunately, this is an impossible question to answer reliably. All we can do is observe the facts, and try to base the future sentiment about SHIB on its historic data.
What definitely stands out immediately from the information we have is the fact that memecoins like SHIB have actually managed to reach and sustain really respectable positions without any utility, which many argue could be due to the extremely strong, almost cult following of the asset class. The strong belief put into memecoins like Shiba Inu can be the main driver of its valuation in the future, and the cohesion within its community could become the key to prosperous years for SHIB. If, however, SHIB investors manage to get more candidates aboard, the growth of the token could exponentially accelerate in the reasonably near future.
All in all, Shiba Inu (SHIB) has demonstrated that memecoin investing is nowhere near dead, and it can result in unreal profits for anyone. Despite the obvious risks involved with memecoins not having any kind of backup, it seems that they actually don’t even need this way of support, as it’s their communities that propel these fun tokens to the top, and to the moon.
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