The cryptocurrency market is slowly gaining popularity and is drawing millennial investors toward it. Institutional and retail investors prefer trading USD coin, Bitcoin, Ethereum, and even meme coins that have gained plenty of momentum. Cryptocurrency trading is similar to profits and losses in stock market investment as well as is exposed to market risks.
Recently, meme coins Dogecoin and Shiba Inu captured the crypto communities’ attention because of their value increase. Bitcoin and Ethereum have become valuable crypto assets but the tokens and coins are a new investment class.
Dogecoin was jokingly minted to make fun of the hypothetical agitation surrounding Bitcoin in 2013. Shiba Inu was created in 2020 as an exchange medium improvising the past prank with its canine mascot.
Both dog-themed meme coins are currently the 9th and 10th most valuable crypto assets in terms of market. Collectively both are worth $79 billion. Other cryptocurrencies started with intent like Bitcoin [a payment form] or Ether [blockchain allows Defi applications like smart contracts]. On the other hand meme tokens started explicitly as a joke, so are risky and puzzling investments.
The Bitcoin value has doubled, while Ether has quintupled in 2021 but small meme coins have encountered drastic movements. Dogecoin is only $0.23 per coin, while Shibu Inu is even cheaper. With $1 investors can buy nearly 14000 coins and there is one Quadrillion [15 zeros] of Shina Inu coins available. It allows the retailer to invest in lots of woof paper and store it in their ZenGo wallet.
Shibu Inu are rolling ShibaSwap, a crypto exchange around tokens and coin. The main purpose of introducing Shiba Inu and Dogecoin is unclear but not the former’s motivation is crystal clear. Shiba Inu aims to dominate the dog-themed coin market via collective actions.
Psychology behind the increase in meme coin value
According to market experts, meme coins have no underlying purpose but are gathering value solely because of projected market demands. Speculation has increased the value of multiple crypto assets in the last couple of years including meme coins, NFTs, crypto, and more. Many retail investors can burn if the speculation goes in the wrong direction at any time.
Ryoshi is the author of Shibu Inu’s whitepaper [‘Woof paper]. The writer shares in the paper that Shibu Inu has earned the tag DogeCoin Killer as its value is prepared to overtake Dogecoin’s value. Even if SHIB doesn’t reach $0.01 between their utility and publicity it will be proportionately more worthy than DogeCoin.
Established cryptocurrency investment is getting more and more expensive, so investors are drawn toward cheaper coins. They offer them an opportunity to earn big early returns. It is a theory that has drawn them towards outsized returns. The psychology that BTC investment has made people rich is working here. People don’t desire to miss out on the opportunity or be left behind when high value strikes.
An average cryptocurrency investor is not concerned about what the meme coins are doing but is concerned about their speculation. People are appreciating the meme coin without understanding its real-world utility.
Stock analysis is easy because there is a framework but with cryptocurrency what the price must be is unknown. Investors need protection from speculative bubbles!