Shiba Inu price to be ‘worthless’ when normal market processes resume
Dogecoin ‘is pure speculation and will end badly’ says Yusko
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Shiba Inu (SHIB) has experienced a mass sell-off in the past four days. The rivalry between Shiba Inu and the Elon Musk-backed Dogecoin (DOGE) has seen the two memecoins jockeying for ninth place by market value in the cryptocurrency market capitalisation charts. The rabid ‘dog-fight’ between the two canine tokens reached a climax on 28 October when Shiba Inu, which is officially promoted as “a dogecoin killer”, superseded dogecoin’s position as crypto’s leading meme coin.
Speaking to Express.co.uk Waseem Mamlouk, VP Capital Markets at Nimbus DeFi, spoke about the scant use-case of memecoins such as Shiba Inu.
He described the price discovery process of memecoins such as Dogecoin and Shiba Inu.
He said that the “only thing that gives a memecoin any value is that there is a buyer waiting to purchase their own amount of such coins”.
He said: “The question of whether one will overtake the other or not is an ongoing one because you still have all the different variants including Floki and different versions of Shiba with very creative names.
“However, they all end up being meme coins with no project behind them which leaves only the community and some clever management with flashy advertising techniques to create an environment in which the coins are actually worth something.
“I would even suggest that they probably will end up being worthless one day as well as many of the other meme coins.
“Like with the so-called ‘art’ NFT market, the only thing that gives a meme coin any value is that there is a buyer waiting to purchase their own amount of such coins.
“Once this dynamic has run its course we return to the normal process of the market.”
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Shiba Inu’s price lay stagnant for many months until February 2021 saw it piggyback on a resurgent dogecoin that was helped by certain tweets by Elon Musk.
In May 2021 the price of Shiba Inu pumped by over 300 percent after Musk mentioned he was planning to get a Shiba Inu puppy.
The real bull-run of Shiba Inu took hold in October of this year.
In October the price soared by 1000 percent.
This was in no small part due to Coinbase listing the coin in early September.
The listing of Shiba Inu was a surprise jab that rocked the Dogecoin community and saw SHIB knock DOGE off ninth place by market cap.
However, SHIB has now fallen back into 11th place by market capitalisation.
The price as of the time of writing is $0.00005917, with a market cap of $32.6bn.
In comparison, to the ire of the ‘Shib-Army’, Dogecoin has jumped pack to its former position in ninth place by market capitalisation, worth $34.5bn.
The price of Dogecoin is $0.2614 as of the time of writing.
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