Shiba Inu (SHIB) is among the most sought-after cryptocurrencies in the meme market segment. It even soared above Dogecoin in 2021, eclipsing its fame in the markets. Investors are drawn towards SHIB as the token is a low-hanging fruit that’s up for grabs. It’s available for less than a Cent, and traders can accumulate millions of tokens for under $15. Despite the fame and hype, holding Shiba Inu in your wallet comes with several risks and challenges.
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Shiba Inu: Weighing the Risks & Challenges of the SHIB Token
- Huge Circulating Supply
Shiba Inu has an unending circulation supply of 589 trillion tokens, making it available for decades. The tokens need to be scarce to drive both demand and prices up. Since the supply is abundant, its price might remain at this level for a longer time than imagined. This is among the risks and challenges of hoarding Shiba Inu in your wallet.
- Meme Market Competition
After the rise of Dogecoin and Shiba Inu, competition in the meme currency market has surged tenfold. Meme coins sprang up like mushrooms in the last four years, making investors spoilt for choice. Now, other meme currencies like Bonk and Pepe, among others, are outpacing SHIB. The rising competition is making investors weigh in on the risks and challenges when buying Shiba Inu.
- No Real-World Utility
While Ripple’s XRP and other cryptocurrencies have real-world utility, SHIB is barely a coin in the markets. Though the team launched a burger joint in Italy named Welly’s, it does nothing to solve the problems plaguing the financial world. If Shiba Inu does not gain real-world use cases, the risks and challenges to its prospects remain high. For SHIB to surge in value again, even people outside the cryptocurrency realm must believe that it could be useful in the financial sector.