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This is the digital currency that has doubled in price in the past 7 days, dubbed the “Dogecoin destroyer” | DietDF

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This is the digital currency that has doubled in price in the past 7 days, dubbed the "Dogecoin destroyer" |  DietDF thumbnail

Shiba Inu (SHIB), a digital currency inspired by a dog, has just continued to set an all-time high.

Although the price is only 0.0000594 USD, which is less than 1 cent, this meme digital coin has attracted a lot of attention. Shiba Inu is currently the world’s 11th largest coin by market capitalization, according to CoinMarketCap data. In the past 7 days, it increased by more than 111%.

CoinTelegraph reported that someone spent 3,400 USD to buy Shiba Inu since last August and now has become a USD billionaire just because of it. This investment holds $1.5 billion in assets.

Shiba Inu supporters call this “Dogecoin destroyer”. Indeed, the two meme coins are inspired by dogs (hence also known as dog coins) with fierce competition. Currently Dogecoin is ranked at number 10.

Although Shiba Inu is super cheap and many people will feel this is a good opportunity to “get on board”, analysts I think that investors should research carefully before deciding whether to invest here or not.

“Before investing in any digital currency, it is important that you need to You have to understand where you’re investing, what the risks are, not just the excitement it creates,” said Douglas Boneparth, president of personal financial consulting firm Bone Fide Wealth.

Shiba Inu is widely coined as an altcoin – a term used to refer to a group of digital currencies outside of bitcoin. In general, cryptocurrencies are highly volatile and highly speculative, but for altcoins the level is even higher.

Here’s what to know about Shiba Inu.

What is Shiba Inu?

This digital currency was born in May August 2020, with the “father” as an anonymous character with the nickname Ryoshi. As the name suggests, this is a coin inspired by the famous Japanese Shiba breed dogs.

SHIB is a token created and developed based on the Ethereum blockchain platform. instead of developing your own blockchain. According to the white paper, Ryoshi decided to do so because Ethereum is a “secure and stable blockchain platform”.

However, experts still warn against launching a project on Ethereum blockchain platform is too easy, many digital currencies are incomplete but can be put into circulation. Developers also have very little cost.

The total supply of Shiba Inu is 1 trillion VND. Ryoshi said he does not own any Shiba Inu and almost half of the supply is locked in a “liquidity pool” on the Uniswap decentralized exchange. The call part is sent to Vitalik Buterin, the co-founder of Ethereum.

The white paper of Shiba Inu states that Ryoshi sends these tokens to Buterin in the hope that he can keep them. But Buterin did not do so. He donates most of it to the Covid relief fund in India and a few other charities.

What are the risks of investing in Shiba Inu?

“The success of altcoins like SHIB depends largely on the community that backs them, not the features they offer,” said Boneparth, who started invested in Bitcoin since 2014. In fact, Ryoshi himself also called Shiba Inu “an experiment in building a decentralized community”.

Analysts warn that investing in cryptocurrencies can cost you his entire savings. What you should do is only invest within your tolerance, no matter which digital currency you choose.

However, for altcoins, the level of caution must be even higher. because of many differences in structure, supply and features compared to bitcoin.

For example, bitcoin was born in 2009 with the intended function of creating a horizontal financial system. goods (P2P). The bitcoin blockchain is also carefully developed, creating a complete, complete ecosystem. In addition, bitcoin has a limited supply and that attainment is considered a store of value. Bitcoin holders also expect this to be the dominant decentralized digital currency.

Most altcoins do not have these properties.

SHIB supporters argue that Shiba Inu’s ecosystem also offers many uses such as smart contract creation, non-fungible tokens (NFTs) and mining opportunities for the community. But Brett Harrison, president of crypto exchange FTX US, said that “many altcoins are too risky and not even worth the investment, so investors should not trade these assets without doing thorough research.” .

“There are many digital assets that are suitable for retail investors. Their prospects are tied to their ability to provide a store of value, which is part of the strategy. payment system that works well or is used to develop applications using blockchain technology.Retail investors should choose such assets instead of investing in a digital currency that is increasing in value too quickly. because of the virtual fever”.

Thu Huong

Theo Business and Marketing

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