A Dogecoin provoked a hype on stock exchanges, fueled by tweets of Tesla boss Elon Musk.
A cryptocurrency, decried as a memecoin, recorded a huge price increase within a very short time. However, recent Musk’s negative comments about the coin were followed by a rapid price decrease. Many memecoins, including Cumrocket Crypto, for example, cause quite a stir due to rapid price increases.
Now there is another coin highly reminiscent of the Dogecoin. A Shiba Inu token (SHIB) experienced a hype that is comparable to that of Doge. Thus, it’s a good reason to take a closer look at the new project. Is it just another memecoin or does the project have potential? Let’s try to find out!
Shiba Inu: Another Memecoin or Worthwhile Project?
Dog-based coins seem to be a number one hit in the crypto world right now. After Elon Musk came out as a fan of Dogecoin, the price of the cryptocurrency rose sharply. Likewise, another memecoin Shiba Inu was able to achieve similar successes as Doge.
Instead of a whitepaper, Shiba Inu developers published a ‘Woofpaper’. In other respects, the coin seems to be a pure satire on Doge. But what is the purpose of SHIB then? Obviously, it’s quite similar to the Doge’s one. Doge was particularly successful in the USA. The price of the coin rose to almost $0.60 per DOGE.
SHIB tokens rose in price at a similarly fast rate from 0.0000015 to 0.000030 US dollars, which equates to an increase of almost 2,000%. SHIB is based on a huge total supply of one quadrillion tokens. The token caused quite a sensation because it can be traded on many large and well-known trading platforms. These include OKEx, FTX, Poloniex, and will soon include Binance as well.
Shiba Inu Hype Makes Early Investors Rich
Current price increases should particularly please early investors. We’re talking about a SHIB address that bought 200 billion SHIBs for $17 in October 2020. These tokens are now worth over $6.5 million. There is also a very special name among these early investors: Vitalik Buterin. Thus, the co-founder of Ethereum plays a very special role in the Shiba Inu ecosystem.
Buterin is also likely to be one of the reasons for the token’s great success. As a memecoin’s website reports, Vitalik Buterin has 50% of the total token supply. However, it’s necessary to note that Shiba tokens are currently causing havoc on the Ethereum blockchain, which is causing fees to rise.
Market observers report that Shiba Inu transactions are using 10% of the available gas reserves. This has driven already expensive transaction costs from an average of almost $20 to over $180, as current data on Uniswap shows. In addition to SHIB, however, a large number of other tokens are also responsible for the increase.
Other memecoins such as DOGE Killer (LEASH), Dogelon Mars (ELON), and Cumrocket Crypto (CUMMIES) skyrocketed in record time. Almost all rates recorded a huge increase in a very short time, which led to problems and costly transactions on the Ethereum blockchain. Almost all tokens have no real purpose and are pure memecoins, without any further meaning. As a rule, their prices fall as quickly as they rise.
What do you guys think about SHIB memecoin? Feel free to share your opinions in the comments!