Shiba Inu Coin: Is It A Bad Cryptocurrency Investment? Is it dangerous?
The Shiba Inu cryptocurrency – a memes-based cryptocurrency with a significant number of online fans – may not always be a smart investment for people because, well, people don’t keep the room for a very long time.
New data from the Coinbase cryptocurrency exchange suggests that different cryptocurrencies have different median holding times, meaning that buyers hold their investments for different time periods. By The Motley Fool, here’s a breakdown of the median wait times for different crypto tokens.
But the Shiba Inu coin – the memes-based crypto token that has grown in popularity – has one of the lowest retention times to date. The median for Shiba Inu coins is 10 days, according to The Motley Fool.
- “With Shiba Inu ‘hodlers’ having the option of wagering their coins to earn interest, we would expect this median retention time to increase dramatically,” according to The Motley Fool. “The fact that he didn’t suggest two things. This implies that emotionally motivated day traders are running this show, and secondly, suggests that investors take their profits and look elsewhere.
- Another takeaway – “belief in SHIB’s long-term prospects as a payment coin is not as high as you might think,” according to The Motley Fool.
That said, the Shiba Inu coin recently hit an all-time high in value, and it continues to perform well even though there are a lot of skeptics, as I wrote for the Deseret News. The coin has been so successful thanks to the discussions on social media and its community, which gives it a head start over other cryptocurrencies.
Still, Douglas Boneparth, certified financial planner and chairman of Bone Fide Wealth, told CNBC that investors should do their research before putting money into the crypto coin.
- “Before investing in a cryptocurrency, it’s important to understand what you’re investing in and the associated risks, not just the hype around it,” Boneparth said.
According to InvestorPlace.com, Shiba Inu has yet to make itself viable as a long-term investment as people continue to make short-term gains. Hoping for long-term success is not a good solution.
- “While crypto millionaires are a real thing, the use cases and utility set each coin apart,” InvestorPlace.com reported. “Although Shiba Inu has a great development team, they haven’t made a difference in terms of functionality. In the end, buying something with no inherent fundamental value is not a prudent financial decision.”