Cryptocurrency value

Why the value of cryptocurrency continues to climb despite the Bitcoin collapse

The world’s largest cryptocurrencies all lost value on Wednesday, from Bitcoin and Ethereum to Ripple and Dogecoin.

But one currency continued to soar, defying expectations and making a name for itself as the next big coin.

Shiba Inu Coin has gained an additional 30% which means it has now grown a ridiculous 60,000,000% over the past year.

CoinDesk has now valued it at $ 0.000069, with a market cap of $ 38.5 billion, more than companies like HP and Nokia.

But what exactly is behind its success? Here’s what you need to know.

What is the Shiba Inu play?

On its website, Shiba Inu Coin presents itself as “a decentralized spontaneous community building experience”.

It was launched in August 2020 and is listed on its own decentralized exchange called ShibaSwap.

According to Binance, the total supply of Shiba tokens is one quadrillion (1,000,000,000,000,000) and the current supply in circulation is 100%.

The Shiba Token website says that 50% of the total supply has been locked onto Uniswap, a decentralized financial protocol that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain.

The remaining 50 percent was burnt to Ethereum co-founder Vitalik Buterin.

“Everyone has to buy on the open market, ensuring fair and complete distribution where developers don’t have team tokens they can throw at the community,” the website says.

However, according to Binance, “the top No.1, No.2, and No.5 wallets hold 50.5%, 7%, and 3% of the total supply, respectively.”

The mascot of the coin is the shiba inu dog, the same breed that represents Dogecoin. He also nicknamed himself the “Dogecoin Killer”.

Why does the Shiba Inu go up?

Some investors find coins like Shiba Inu attractive because they offer the possibility of quick wins. However, you can also lose all your money in a little over an instant.

Jonathan Cheesman, head of institutional sales at the FTX crypto-derivatives exchange, told Bloomburg about the rise of Shiba Inu Coin: “Memes have value and have been an investable thesis in 2021. Tokens low dollar prices are attractive for retail sale.

The market has also been buoyed by rumors that it may soon be added to the popular Robinhood trading platform.

More than 300,000 people have signed a petition calling for its addition, and although Robinhood has yet to respond, its CEO Vladimir Tenev said earlier this week that the platform “will carefully assess whether we can add new parts in a safe manner. for customers and in accordance with regulatory requirements ”.

He added, “We feel very, very good with the parts that we are currently listing on our platform. And for all the new pieces we add, we want to feel equally, if not better. “

It doesn’t take much to move the Shiba Inu market – earlier this month its price went up only because Elon Musk tweeted a photo of his puppy. Musk revealed that he does not own a Shiba Inu coin himself, but does own Bitcoin, Ethereum, and Dogecoin.

Should I invest in the Shiba Inu?

People invest at their own risk and cryptocurrencies are not regulated by the UK financial authorities.

All crypto investments are risky, but coins like Shiba Inu are particularly volatile and you should be prepared to lose whatever you invest.

The Financial Conduct Authority (FCA) warned in January: “Investing in crypto-assets, or related investments and loans, usually involves taking very high risks with investor money.

“If consumers invest in these types of products, they should be prepared to lose all of their money. “

Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown previously explained the risks of I.

She said: “In addition to being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty, but also means investors have little to no protection against the risk. fraud.”

Source link