Shiba Inu is a relatively new meme coin on the block, but it managed to create quite a buzz in the crypto space. Currently the market has over 5,000 meme coins to offer, but Shiba Inu is special. It is one of its kinds that managed to threaten Dogecoin with its rising popularity, number of holders, and market capitalization.
Many see Shiba Inu as a Dogecoin killer because of its ability to execute smart contracts, a feature that Dogecoin lacks. But is this reason enough to buy Shiba Inu?
Be it meme coin or altcoin; cryptocurrency investment is always risky. Hence, if you’re planning to invest in Shiba Inu, you should know its pros and cons. Knowing the positives and negatives will help you decide whether it is worth adding Shiba Inu to your portfolio or not. To help you save the needed research time, we have curated an epic guide listing the positives and negatives of Shiba Inu. So let’s quickly head to the list.
Pros of Shiba Inu
If you’re contemplating investing in Shiba Inu, you may start by learning the benefits of investing in this cryptocurrency. We have listed the following pros of Shiba Inu for your reference.
- Shiba Inu is an ERC-20 Token
Many investors wonder if they should invest in Dogecoin over Shiba Inu because the former was an early entrant in the market and has stayed long enough. An edge that Shiba Inu has over Dogecoin is its utility. As Shiba Inu is an Ethereum-based coin, it can execute smart contracts. This is a significant feature that Dogecoin lacks. So if you’re looking for a meme coin that offers more utility, Shiba Inu is for you.
- Availability of ShibaSwap
The developers of Shiba Inu have built ShibaSwap, a decentralized exchange exclusively for Shiba Inu owners. You can consider ShibaSwap as a savings account that gives interest on the accumulated amount. While other available crypto exchanges allow crypto buyers and sellers to indulge in secure trade, ShibaSwap allows this meme coin owner to stake their coins for rewards.
- It is a Cost-Effective Investment
As more people have started accepting cryptocurrencies, their prices have begun to soar. But luckily, there are some lucrative investment options that are not too expensive. Shiba Inu is one of those meme coins that are affordable and offer excellent growth prospects. For example, if you cannot buy Bitcoin because of the prevailing prices, you can certainly invest in Shiba Inu, eyeing great gains.
- Supported by Various Celebrities
We all have seen how a single positive tweet can influence a cryptocurrency’s price. The more celebrities favor a particular cryptocurrency, the better it is. Luckily, Shiba Inu has many supporters, including Elon Musk, Kai Greene, Nick Carter, Antonio Brown, and many more. And with so many celebrities tweeting in favor, you can expect Shiba Inu to maintain a positive price graph.
Cons of Shiba Inu
Now that you’re aware of the positives of Shiba Inu, let’s quickly check its cons shared below.
- Lack of Innovation
While most cryptocurrencies were created to solve a real-world problem, Shiba Inu was created as a spin-off of Dogecoin. Even though Shiba Inu is a popular meme coin, it lacks to provide any unique, real-world utility. The only thing that makes it a little valuable is its ability to execute smart contracts. This one disadvantage can put Shiba Inu on the back foot in the long term.
- Not an Independent Blockchain
Shiba Inu is an ERC-20 token based on the Ethereum blockchain. Although it has its pros, it also comes with disadvantages. Any change in the transaction speed, fee, and infrastructure of Ethereum can indirectly affect Shiba Inu, which is not the best thing an investor would expect to happen.
- High Degree of Volatility
All cryptocurrencies are volatile, but those lacking real-life utilities are more vulnerable to high risk. Digital coins or tokens riding the popularity wave can fall on the ground at any moment because they don’t have any other factor determining their value. So if you’re a seasoned investor eyeing long-term gains, investing in Shiba Inu can be highly risky. Invest in it only after doing due market research and when you’re willing to face extreme price swings.
Should You Invest in Shiba Inu?
Now that you’re aware of the pros and cons of Shiba Inu, making an informed decision won’t be challenging. You can evaluate and assess your investment decision based on the above mentioned points. But before investing in Shiba Inu or any other cryptocurrency, keep in mind that it’s risky and volatile.