Could Shiba Inu Be Used as a New Cold War Honeypot?

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For casual observers, the meteoric rise of meme cryptocurrencies like Shiba Inu (CCC:SHIB-USD) is an oddity. However, it’s largely assumed that the consequences of rampant reckless speculation rests with the individual gambler. Still, given the rising geopolitical tensions between the U.S. and Russia, I can’t help but wonder, is SHIB a small but important cog in the Cold War-style narrative?

A close-up shot of Vladimir Putin in front of a microphone.
Source: Frederic Legrand - COMEO / Shutterstock.com

At first, the concept of Shiba Inu being anything more than a crypto token with an extremely bullish fanbase would be met with skepticism. However, Russian President Vladimir Putin has been on a mission, both to undermine global democracies and expand his nation’s influence. Thus, it wouldn’t be a stretch of the imagination to suggest that he views crypto as another platform to wage war against the west.

According to the journal Foreign Policy in Focus, “In the world of espionage, the ‘honeypot’ is trap in which someone seduces an unsuspecting diplomat or embassy employee. Then the seducer – a ‘swallow’ (woman) or a ‘raven’ (man) – blackmails the dupe. During the Cold War, the Soviet Union developed a certain expertise in using honeypots to extract information from CIA operatives, FBI agents, and ambassadors.”

I mention this because honeypots are not some conspiracy theory or a plotline in a Hollywood fiction. They’re very much real and Russians are experts at using their daughters in any manner possible in a bid to hurt and discredit the U.S. Unfortunately, under Putin’s Russia, no low is too low.

Now, I don’t think we’ll adopt a reverse Michelle Obama strategy — when they go low, we go lower. But we should at least be mindful of what the Russians are capable of. If they have no qualms about deploying seduction as warfare, they will gleefully attack the U.S. through financial means.

Psychological Ploy Behind Shiba Inu

Interestingly, Russia’s central bank expressed grave concerns about cryptocurrencies, noting that by “offering an outlet for people to take their money out of the national economy, they risk undermining it and making the regulator’s job of maintaining optimal monetary policies harder.”

What’s more, the central bank is essentially learning the lessons that Americans absorbed the hard way. “At the start of the [Great] Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts.”

Decentralization may be good for the consumer but it’s been proven bad for policymaking and governance. Therefore, something like Shiba Inu — reckless but also extremely popular — is the bane for any legitimate country facing an economic crisis, such as the coronavirus pandemic.

When you’re struggling to gain traction economically, the last thing you want is for people to spend their money outside your borders. You want to keep the money within the family, so to speak. But with Shiba Inu, family is a relative, decentralized concept.

The problem is, I think Putin recognizes this. Responding to the Bank of Russia, he acknowledged the volatility risks that cryptos like Shiba Inu pose to individual Russians. However, he also noted that Russia’s vast resources permit “certain competitive advantages” when it comes to crypto mining.

Boom. That’s the honey pot.

By discouraging Russians from buying cryptos but encouraging its mining (i.e., production), Putin could potentially on balance convince others (Americans) to buy the drugs that he’s selling. And he’s smart enough to know these things could go to zero.

Crazy but Also Not so Crazy

I know what some of you are thinking. Russia, Russia, Russia. To which I would say, heck yes, Russia, Russia, Russia! I mean, what better tool does the wolf have than to convince the sheep that it’s not a wolf? It’s like shooting fish in a barrel with a 12-gauge shotgun.

Admittedly, a part of this article involves me fishing in the deep end because I’m not sure what else I can write about Shiba Inu that’s remotely interesting. However, the backdrop makes sense in many ways. For instance, as Russia ponders its crypto regulation status, the Biden administration may do the same.

In my view, if Shiba Inu and the crypto complex become part of the geopolitical narrative, investors need to brace for a possibly long blockchain winter. Because Putin never does anything without a reason. Thus, we need to match him move for move, if only to neutralize a threat that we Americans are mocking now but may not be laughing about later.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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