The people behind Shiba Inu (SHIB-USD) announced on Wednesday that you can now buy land in the SHIB metaverse using the meme coin for payment. That’s good news at a time when SHIB could use a boost, down around 75% since its October 2021 all-time high, but it might not be enough.
The first 36,431 of 100,595 plots were unlocked in mid-April. The four categories of land available are priced between 0.2 ETH and 1 ETH. In addition, it is doing projects supporting non-fungible tokens (NFTs) and decentralized finance (DeFi). Despite all of the pies it has its fingers in, investors have lost confidence in Shiba Inu.
New data suggests that both big and little cryptocurrency investors are moving on to greener pastures.
First, according to FXStreet, the 100 largest wallet addresses on Ethereum (ETH-USD) holding Shiba Inu — they hold close to $1 billion — have sold more than $17 million of the meme coin in recent days.
More importantly, the data surrounding Shiba Inu’s overall investor base appears to be more disturbing. Having fallen by more than 10% in the past week, more investors are now losing money from SHIB than making money.
According to IntoTheBlock, 710,000 wallet addresses have lost money compared to 366,000 that have made money. In addition, the number of Shiba Inu wallet addresses has fallen by 70,000 over the past three months to 1.08 million. At this pace, Shiba Inu wallet addresses will slip below 1 million in the fall.
That won’t be good for Shiba Inu’s price.
InvestorPlace’s Chris Tyler recently stated that Shiba Inu would continue to drop because owning risk-on assets such as a cryptocurrency with meme status in current markets is a recipe for disaster. Now is not the time. My colleague believes that Shiba Inu’s price has yet to bottom, making its purchase unwise at this time.
I’ve never been on the Shiba Inu bandwagon, so I’m not the person to deliver the “it ain’t over until it’s over” speech. I last wrote about the meme coin in early April. I recommended investors stay away. It’s down 21% since.
The fact you can use SHIB to buy land at the SHIB Metaverse does little to save the meme coin’s bacon. It’s cooked despite the news.
On the date of publication, Will Ashworth 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.