On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Coin Burning and Community: How the Shiba Inu Crypto Can Reach $1
At face value, Shiba Inu (CCC:SHIB-USD) doesn’t look like a cryptocurrency with a ton to offer. A cynic could look at the whopping 1 quadrillion total supply of tokens. They could look at the fact that it has very limited scope as a method of payment, outside of consumer electronics and movie tickets. They could look at the logo and scoff at the idea of a pupcoin being the “currency of the future.” At first glance, SHIB doesn’t look like a currency that deserves to rank within the top 15 in the world. Talk to a member of the SHIB crypto community, though, and they might change your mind.
In fact, community is a huge part of the SHIB ethos. Just consider any of the many trending Shiba Inu hashtags on Twitter. You’ll see thousands of posts from users with SHIB profile pictures and names like “#SHIB Army.” You’ll see dialogue between pupcoin veterans and newbies, pedagogical lessons in buying and “hodling.”
Questions and requests often take shape here as well. Community members have questions like, “What’s the next step for the development of the token?” One of the most burning questions is “What will it take for SHIB to reach $1?” Indeed, Shiba Inu bulls, like those of any other kind of digital currency, want to see their token reach the $1 mark. It’s a signal of success; the price is low enough to invite anybody to invest, but high enough to prove legitimacy to any doubters.
It’s painfully obvious that millions of SHIB holders do in fact see the Shiba Inu crypto as the future of digital currency. They love the token, so they want to see it grow and make them money along the way. Possibly most importantly, they want to see it reach that $1 target.
But what’s holding others back? Well, many investors need a catalyst. Some would like to see a Robinhood (NASDAQ:HOOD) listing. Others want to see the supply shrink to curb dilution.
And while we’ve seen several speed bumps in the road, there are a number of ways in which SHIB holders themselves are taking action as a community.
Shiba Inu Crypto Holder Tristan Luke Helps Lead the SHIB Charge
Tristan Luke, a music teacher and devout SHIB supporter, is perhaps one of the best examples of the Shiba Inu community. He’s a quasi-celebrity, even though many (or most) people don’t know his name.
That’s because Luke took it upon himself to make the most successful call to action the SHIB community has ever seen. His petition, requesting a Robinhood listing of Shiba Inu, has over half a million signees.
When Luke talked with InvestorPlace, calling from his home in the mountains of the northeastern United States, he made it obvious the petition wasn’t about attention. It came from a pure desire to see his favorite token succeed. His feelings mirror those of thousands of other SHIB fans.
“I tend to act on inspiration and emotion, so I think that was probably a big influence on this,” Luke said.
Dogecoin Trading on Robinhood Opens the Doors for SHIB
While Luke may have acted on influential emotions, his decision to create the Change.org petition also was the result of some strategic thinking. He said that, earlier in 2021, he began thinking about what catalysts could send his favorite cryptocurrency higher. This led him to the rich history between Dogecoin (CCC:DOGE-USD) and Robinhood.
In the winter of 2018, Robinhood brought crypto trading to its platform. The exchange had spent the previous five years unseating the e-brokerage industry by introducing the payment for order flow (PFOF) model. PFOF allowed Robinhood to introduce fee-free trading and attract an army of eager retail investors. Introducing crypto trading was a natural next step, offering widespread exposure to the asset class.
When Robinhood introduced Dogecoin to its platform months later, it set the stage for another revolution in investing.
Flashing forward to early 2021, when Dogecoin surged from 1 cent to 73 cents, it brought hundreds of millions in revenue to the platform. The meme coin made people into millionaires.
A Petition Written on a Whim Rocks Change.org
Recalling this surge, Luke said “Why not? Why can’t Robinhood do the same for Shiba Inu?” After all, the platform is in dire need of reinvigoration; in Q3 of this year, the company reported only $51 million in crypto revenue — a steep drop off from the $233 million it pulled in Q2.
As a freelance copywriter, Luke saw it fit to put his writing chops to work. He sat down at his computer and typed up a simple request for Robinhood: List Shiba Inu. The copy was short and sweet, painting a rich picture of how both parties stand to benefit from the listing. He took the request to Change.org and uploaded it as a petition. Little did he know just how much the request would explode.
“Dogecoin has been a huge success for Robinhood, and its investors. We have all enjoyed the ride. Shiba Inu is a similar meme coin with genuine potential, up 2000% in the last weeks!”
Back in May, the goal for the petition was a modest 100 signees. By June, signatures far surpassed 100,000. Today, that figure is over 540,000.
‘List SHIB On Robinhood’ Petition Breaks Change.org Records
Luke’s petition proved just how many investors support a Robinhood listing. And who wouldn’t want to see the token on Robinhood? The platform itself could see its trading revenue swing back up thanks to the rabid SHIB fanbase. And in turn, Robinhood stands to make investing in the Shiba Inu crypto easier than ever before.
As the petition continues to accrue signatures over seven months since it initially landed on the platform, it is becoming a rallying cry for the entire SHIB Army. The page has even landed mainstream media attention, with coverage in the likes of Bloomberg and Fortune.
Christina Martin is a campaigner for Change.org, and she was one of the many employees who took notice of Luke’s petition and its success. Speaking with InvestorPlace, Martin said Luke’s post is by far the most successful cryptocurrency petition on the website. In fact, it is the largest Robinhood-related petition on the platform as well.
“This is by far the biggest [Shiba Inu petition on the site],” she said. “The next highest petition has about [100,000] signatures; this is more than quadruple that in size.” She also said the petition is one of the fastest-growing the site has ever seen.
Robinhood’s Response to Shiba Inu Crypto Holders Causes Bump in the Road
While Luke’s efforts have not gone unnoticed, the petition has faced several roadblocks.
Recently, Robinhood’s Chief Operating Officer Christine Brown praised the SHIB community in an interview. She lauded community efforts to create a conversation around a Robinhood listing, stating the engagement is one of her favorite things.
But this praise came with a sharp twist. When pressed on whether the petition would lead to a listing, she didn’t answer in the affirmative. “We think that the short-term gain to us is not worth the long-term tradeoff for our users,” Brown said, essentially shutting the conversation down.
Is a Robinhood listing really only a short-term gain for the platform?
Supporters have outlined the argument that it will lead to an upswing in trading revenue for Robinhood. But, as is the case with Dogecoin, interest does wax and wane. Chances are that another token will pop up, garnering similar levels of momentum.
At the same time, there is reason to believe that Shiba Inu is different. Can the broad exposure brought by a Robinhood listing lead to transformational, widespread adoption of SHIB?
Could a Token Burn Push SHIB to $1?
The debate will rage on until Robinhood definitively blocks a listing or gives in and adds SHIB to its platforms. For investors though, this game of “wait and see” isn’t satisfying.
Thankfully, there is another way that the SHIB crypto can reach $1. That alternative path, for which some SHIB holders are barking, is a token burn.
A token burn is essentially the stock buyback of the crypto world. When a network institutes a burn, it sends some amount of the crypto to a wallet address which no person has access to, removing it permanently from circulation. This can happen as a one-time event or as a part of the crypto’s tokenomics. For example, many deflationary tokens burn a portion of tokens from every single transaction through fees.
Shiba Inu is not new to token burns. It gifted 500 trillion tokens to Ethereum co-founder Vitalik Buterin, who then burned a majority of the tokens and donated the rest to charity. This surprise burning of nearly half of the total supply caused some immediate turbulence, but it ultimately strengthened the value of SHIB through supply-and-demand economics. With fewer tokens to grab hold of, but more and more investors wanting to own their own SHIB, prices quickly shot upward.
It has also sporadically burned tokens throughout the last few months, mostly a few million at a time. While these are a drop in the bucket given its 1 quadrillion total supply, they’ve helped to boost token values. In fact, even staunch supporters of a Robinhood listing see a token burn as an equally useful option.
Luke himself sees positives in regular token burns. “Every time they [burn tokens], and if they’re willing to increase [the volume of tokens burned], we could get a radical boost to the value of this token,” he said.
Shiba Inu Crypto Community Pushes for $1 With Unique Efforts
Shiba Inu developers are not clear on what the future holds in terms of token burning. The official Twitter account is largely quiet on any questions raised about making transactional burns a reality. As such, users are taking it upon themselves to burn coins.
Over the last several weeks, community-driven projects have popped up to help reduce the total supply. The SHIB Burn Playlist allows holders to stream a playlist on music streaming platforms, which then burns tokens. Another project, the Shiba Coffee Company, destroys SHIB every time a user buys a bag of coffee. These projects typically burn tokens by sending them to Vitalik Buterin’s address — the same method used by developers.
So while Shiba Inu crypto holders patiently wait for more on a potential Robinhood listing, and while they continue to press developers for a greater reduction in total supply, the community is proving the token’s worth through its own power.
The community therefore is worthy of admiration. Even in the face of uncertainty, it takes pains to boost the value of the currency in innovative new ways. The efforts of Tristan Luke, the efforts of the Shiba Coffee Company and the developers of this playlist — these are the efforts that will elevate SHIB to new highs.
Combine that with one of these two major factors and you have a very convincing case for SHIB rising to $1.
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