Is Shiba Inu a Scam?

Is Shiba Inu a Scam

Following its legitimisation by Binance on May 10, 2021, the Shiba Inu coin has been gaining new ground fast. Since its debut on August 1, 2020, itself, the cryptocurrency has returned more than 5,350,000%. The continual success rate of Shiba Inu is the outcome of a handful of factors. Is Shiba Inu a Scam? You will be able to decide for yourself when you come to the conclusion. 

Shiba Inu is made its way on a number of cryptocurrency exchanges this year. Investors with access to purchase SHIB is the primary step facilitating adoption. Then, similar to Dogecoin, Shiba Inu takes its cues from the maverick billionaire ElonMusk. Musk has been demonstrably supportive of  Dogecoin. Even oblique tweets from the billionaire about the Shiba Inu breed of dogs is perceived as a signal by followers. His tweets are practically cues to pile into SHIB. 

Another important factor was the ShibaSwap launch, July 2021. A decentralised exchange, ShibaSwap permits investors to stake their SHIB to earn interest. Regardless of staking, the capacity to yield returns through staking ought to persuade SHIB owners to hang onto their tokens for a longer period. 

Ultimately, momentum is all for Shiba Inu. You know investors are going to pile in for fear of missing out (FOMO), when an asset rises more than 5 million per cent in close to 15 months. Also find how to avoid cryptocurrency scams.

Cautionary tales: Is Shiba Inu safe?

Notwithstanding the appearances of estimable upsides, Shiba Inu can be seen in the company of the following caveats. 

91 merchants accept Shiba Inu 

One of the most conspicuous criticisms against Shiba Inu has been that it has practically no utility. Per Cryptek,  just 91 largely obscure online companies accept SHIB as a payment form.  Shiba In is a payment oriented token. The absence of tangible concern on the coin’s part regarding the payment front is rather alarming. 

13 day average holding period 

Investors ought to be concerned over the demonstrable lack of conviction among their ranks. Per Coinbase, the average holding period in Shiba Inu is just 13 days. SHIB has attracted mostly those hoping to make a swift buck in the short term with the meme coin in vogue. On the other hand, the implication is that Shiba Inu’s investors may not be convinced as regards the coin’s long term viability. After the speculators, it would be far fetched to conjecture that they are more than willing to jump ship on the slightest unfavourable price movement. 

Too many cryptocurrencies? 

Shiba Inu’s investors are continually under the threat of dilution. The perceived threat arises not from other SHIB tokens but from an ever-expanding stream of cryptocurrency projects.  Per one expert estimation, there are 12,968 diverse digital currencies in existence. This number has been growing swiftly as the total cryptocurrency market value has rocketed. Shiba Inu unashamedly offers no clear competitive advantages. The coin’s transaction processing is well below par. Or is it? There’s no conclusive evidence. 

Number of SHIB  token holders 

Shiba Inu’s base of approximately 753,000 token holders forms a rather small community. SHIB  has pushed above an $11 billion market cap but has not the clientele to show for its accomplishments. 

For perspective – Bitcoin boasts of more than 76 million investors globally, as per one estimate. Ethereum has an estimated 10 million strong investor community. Logically, major cryptocurrencies need a broad base of investors to be considered mainstream. 

Decentralisation compromised: SHIB dominated by a hundred accounts 

The top hundred accounts own in excess of 82% of the 1 quadrillion token Shiba Ibnu supply. Granted that Ethereum co-founder Vitalik Buterin has burnt 90% of his SHIB holdings. However, the remainder of the whale investors has the power to gut the coin if they decide to sell. 

Is Shiba Inu profitable? 

These are the days of sequels and remakes. When Dogecoin’s moonshot was followed by a rocket ride for the Shiba Inu, we had our minds made up for us. But do you profit at all by owning Shiba Inu? 

Your commitment to the latest meme coin craze is grounded upon your position size and risk tolerance. We are not prejudiced against smaller coins. However, it pays to understand why the investors’ money is at stake. Would it be far-fetched to hold that this coin could bring you massive wealth?

Shiba Inu: price analysis 

The Shiba Inu price is low. Ludicrously so. Even sub-penny stocks do not, as a rule, trade this low. Not too long ago, the Shiba Inu traded for .000653 cents. The unreadable translation is $0.00000653. We can only speculate as to what a path-breaker SHIB’s being a hundredth of a penny would be. It’s turning the equivalent of a  cent would be a red-letter day. 

A strange phenomenon observed has been the  Shiba Inu price following the Dogecoin price around. If you are following one, it would actually make sense to follow boh meme coins. However, this relationship cannot mean much in terms of stability. 

Per a Coinbase announcement, Shiba Inu was to be available for trading on Coinbase Pro from June 17. Nonetheless, a day later, it was divulged that technical issues prevented the Shiba Inu coin from being launched on Coinbase Pro per the schedule. 

We will just have to watch that space. Another riveting concern involves itself with Shiba Inu being listed on the non-Pro Coinbase. There’s a petition getting traction, demanding that Shiba Inu be listed on Coinbase. When that happens, there will be a huge surge in the token’s price. 

Volatility and safety: oil and water 

 Many experts ask you to be extra cautious with some investments. You really ought to invest money that you can afford to lose. 

Per the Bitcoin Volatility Index, an index measuring the standard deviation of the daily returns for previous 30 and 60 day time periods for Bitcoin and such assets. 

In the context of investing, the standard deviation is frequently applied to the rate of return of an investment product over a time period. This better explains the investment’s historical volatility. The higher the standard deviation, the more conspicuous the difference between the price and the mean , indicative of a broader price range. 

Usually, a higher standard deviation shows that an asset is highly volatile. The implication is that you are burdened with a good deal of risk holding the asset as its price may rocket or plummet any other day. 

Recently, over a month-long period, Bitcoin had a standard deviation of 5.86%. Conversely, gold’s volatility has an average close to 1.2%. Other major currencies’ average close to anywhere between 0.5% and 1%. 

The Shiba Inu is in a class all of its own. Not long ago, over a month-long period, SHIB had a standard deviation close to 400%! 

On the brighter side… 

SHIB is a fungible ERC 20 token. Since the token is on the Ethereum network, SHIB can use smart contracts to make Defi or decentralised finance products. 

ShibaSwap, the exchange, is being planned for launch. Post-launch , SHIB owners will be able to stake their SHOB tokens to dig for BONE. 

The BONE tokens are special, considering that they are available just on ShibaSwap. Matter of fact, these tokens are governance tokens that will permit holders to vote for proposals for the 2022 SHIB ecosystem. 

A rare and laudable action has been the SHIB community has launched an initiative to rescue real-world Shiba Inu dogs. The Amazon Smile feature is used to donate to the cause. The no costs method permits any Shiba Inu member to help Shiba Inus just by using 

Shiba Inu: scam potential 

SHIB  has no underlying value or use cases. Not only is there nothing unique about the coin, but a small group of investors also holds Shiba Inu tokens. The coin thus becomes vulnerable to pump and dump scams. 


ShibaSwap is one positive step for the future. More light could be shed on its transaction processing prowess. Conversely, we cannot blindly trust the whales. They might be good law-abiding investors. On the other hand, they might equally be predisposed to get together to pump up your zeal. Once the predetermined price is reached, the whales just might sell. We have yet to see if there’s more to the meme coin than the short term. Till that time, we know we must not invest more than we can afford to lose. Don’t sell the farm. Do not expect too much, even when you are investing peanuts into the latest craze coin. 

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