The resounding growth of Shiba Inu is continuing even in these hours. The copy of Dogecoin, the one that has so far received the greatest response from investors, has in fact added a further 3% to its price over the last 24 hours. But the data to keep in mind is that relating to the last week, during which yet another meme coin has seen its price grow by over 246%. Enough to climb to 20th place in the market capitalization ranking prepared by CoinMarketCap. A growth which does not seem to take into account the more or less brilliant moments of the market and which seems able to continue undaunted in the immediate future.
At the origins of Shiba Inu's success: Elon Musk's tweet
Until last June, practically no one knew Shiba Inu. At the end of the month, however, he thought about it as usual Elon Musk to ensure him a resounding success. However, it was born out of a real misunderstanding.
The CEO and founder of Tesla, in fact, in one of his tweets had made public his intention to call Floki his dog Shiba Inu, recently adopted. Instead, many thought that the South African-born billionaire intended to sponsor the Shiba Inu (SHIB) token, consequently starting to buy at full blast.
Within hours, the price of the meme coin had risen by 17%, prompting the media to tell what was happening. Up to giving life to one real advertising campaign at no cost. From which SHIB has started a run up which is still continuing and which is destined to arouse many doubts in public opinion.
A climb destined to continue?
The twentieth place just achieved, however, could soon be a memory. In terms of market capitalization, in fact, Shiba Inu is now a little distant from a large number of projects born long before and now consolidated. Among which Wrapped Bitcoin, Bitcoin Cash, Algorand, Litecoin and even that chainlink which also boasts the reputation deriving from the authoritative sponsorship of the World Economic Forum (WEF), which indicated him as one of the technological pioneers of 2020 and who enjoys the thrust of the so-called Link Marines.
Unlike these projects, however, SHIB can be considered a real phenomenon of costume. In fact, nobody knows what it is, what its technical prerequisites and its actual validity are. But many buy it trusting in its further growth. The danger, as happens in these cases, is that the bubble will suddenly deflate, leaving many small investors on the ground.
The risks are indeed enormous
The risks deriving from investing in Shiba Inu, as it will be understood, are extremely high. It is in fact a simple project with a clear speculative flavor, aimed at exploiting the popularity of Dogecoin.
The meme coin invented by Billy Markus and Jackson Palmer, however, demonstrates the dangers inherent in this kind of cryptocurrency. After reaching as high as $ 0,60 a few months ago, the token started a decisive retreat, so much so that today it is around 0,24 dollars. A descending parable which will surely have caused the loss on the part of those who had purchased in the moment of maximum splendor, thinking that the party would go on for a long time.
This was not the case and the DOGE story should be kept in mind by those who are buying Shiba Inu even in these hours. The holidays, in fact, are not meant to last for eternity.