Shiba Inu (SHIB) took the crypto markets by storm when it was launched in August 2020 by an anonymous person with the alias 'Ryoshi'. With a total supply of 1 quadrillion tokens, 50% were locked in Uniswap, the other half was to Vitalik Buterin. Started as an ERC-20 token and marketed as "Dogecoin Killer", SHIB gained so much popularity at the starting of May 2021 and dropped significantly after the market crash. If you want to know more about this meme Token and how it works, please check out the basic guide of Shiba Inu Token by @crypto-guides.
In this blog, we are going to explore whether Shiba Inu Token and its decentralized exchange called Shibaswap are a scam or not. In the end, we will conclude if you should buy SHIB in 2021. Let's start!
Is Shiba Inu (SHIB) A Scam?
Shiba Inu Token is a legit Ethereum based token with no actual utility. It is a meme coin just like Dogecoin. But it's not a scam. It got famous due to social media hype. That is the reason why its price spiked so much due to the increase in investor interest especially in countries like India. During the starting of may, it provided more than 2000% returns within a week. They claim it to be a better version of Dogecoin.
On July 6, 2021 a decentralized exchange platform called ShibaSwap was launched. It functions on Ethereum Blockchain just like Uniswap. SHIB, LEASH, and BONE are three tokens that can be used on Shibaswap. It gives users the ability to provide liquidity, stake and swap tokens to earn WOOF rewards. Apart from this, it has no practical application. DeFi Safety review gives Shibaswap a score of just 3%.
Should You Invest In Shiba Inu (SHIB) In 2021?
Although 2021 came with a great start for Shiba Inu (SHIB) in terms of overall price rise, there are several reasons why I think it is not a worthy investment:
- Utility: Shiba Inu Token has no practical utility apart from ShibaSwap that is quite a new platform. There are thousands of other DeFi platforms available in the market that provide better returns with low risk.
- Speculation: Its price is dominated by market speculation and hence it's highly volatile. It's not safe to put large sums of money into such assets.
- Social Media Hype: Social media is the biggest contributor to the success of Shiba Inu token. It rode the hype wave of Dogecoin and other meme coins. Due to its dying interest recently, we are seeing a huge decline in its price.
- Shibaswap Safety: Is ShibaSwap safe? No. DeFi Safety review gives it a score of just 3%, raised to 35% after Certik's audit. Funds can be stolen by the developers of ShibaSwap from staking contracts since they are owned by one address.
By no means Shiba Inu is a good investment due to multiple red flags. Even though initial investors made crazy returns but without any major practical application its future looks shaky. Investing in Shib is extremely risky and one should not invest more than they can't afford to lose.
What is @crypto-guides?
It's an initiative by @forexbrokr to drive organic traffic to the leofinance.io domain through long-form, SEO-optimized posts featuring high-volume keywords. This project aims to eventually have a leofinance.io based crypto guide for every single coin or decentralized project in existence through user-generated content. Go and check out both the Hive guide and Bitcoin guide that they already published with contributions from the community members.
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