It was really hard for me to take Shiba Inu (CCC:SHIB-USD) seriously. I mean, anything priced at less than 10-thousandth of a penny is just begging to be mocked.
But then I looked at the growth of this pup coin, which was up 49,000,000% in 2021. That kind of performance demands attention – and some respect.
The thing about Shiba Inu, however, is that the growth story really can’t be predicted or even analyzed. SHIB is purely a speculative momentum play, meaning there’s no rhyme or reason as to when it will increase or decrease in price.
To invest in Shiba Inu means you’ve just got to jump on the ride and hope for the best.
What Is Shiba Inu?
First, some background is in order. Shiba Inu is a meme cryptocurrency that was launched by an anonymous founder known only as Ryoshi. It was founded as an alternative to Dogecoin (CCC:DOGE-USD), which itself was created as a joke alternative to Bitcoin (CCC:BTC-USD).
SHIB has been referred to as a “Dogecoin killer.” Even its name is a play off of Dogecoin, whose token features a Shiba Inu.
But unlike Dogecoin, Shiba Inu is built on the Ethereum (CCC:ETH-USD) blockchain, which gives it some additional functionality with decentralized applications.
Who’s in charge of SHIB? Well, I guess we all are. Shiba Inu is a community-based cryptocurrency project, so its followers and devotees (the SHIB Army) are in charge of any further development.
SHIB was created in 2020 with an initial supply of 1 quadrillion tokens. Half of the supply was given to Ethereum co-founder Vitalik Buterin, who in turn burned 90% of his supply and gifted the other 10%.
ShibaSwap, its own decentralized exchange, was launched in July 2021, and a cryptocurrency gaming project based on Shiba Inu is in the works.
What’s Next for Shiba Inu?
When you’re investing in a joke coin that’s mocking another coin, then the idea of fundamentals goes out the window. The trick for Shiba Inu and the SHIB Army is to stay in the public eye. That’s the only real way it will maintain any momentum that will draw in new investors and push the price of SHIB-USD higher.
Not surprisingly, the SHIB Army is good at looking for ways to capitalize on the latest trends or the news of the day.
The official @Shibtoken Twitter (NYSE:TWTR) recently heralded a partnership with Welly’s, which is being called the “first and only SHIB-themed restaurant powered by the community.” Shytoshi Kusama, the coin’s lead developer, says Welly’s is willing to rebrand to cater to Shiba Inu.
Jumping on the increased popularity of metaverse development, Shiba Inu announced the launch of the “Shiberse” to take place this year. The Shiberse is being described as an “immersive experience” with high-quality graphics. But details are still in short supply.
Whatever happens in the metaverse, you can be sure that gaming will be a big part of it. Shiba Inu is already working with Australian game studio Playside Studios and former Activision Blizzard (NASDAQ:ATVI) executive William Volk to explore the gaming space.
Kusama recently tried to capitalize on the news that Microsoft (NASDAQ:MSFT) was going to buy Activision Blizzard. He tweeted that the deal “echoes” Shiba Inu’s decision to hire Volk, and that Shiba Inu and Microsoft share the same vision on the metaverse.
The Bottom Line on Shiba Inu
The most sure-fire way for Shiba Inu to gain in price would be for Robinhood (NASDAQ:HOOD) to finally add Shiba Inu to its platform. I’d love to see that. It would, in all likelihood, help both the lagging HOOD stock price as well as Shiba Inu. But there’s no indication that will happen anytime soon.
If you own SHIB, you must be resigned to the fact that it is a total gamble. Only invest money that you expect to lose. But if the pup coin takes off again, then this joke of a joke will have you laughing all the way to the bank.
On the date of publication, Patrick Sanders 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.
Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.
