Shiba Inu is in big trouble. SHIB may drop 90% (or more)

Shiba Inu’s earnings since he started trading in August 2020 have changed the lives of some investors. However, the SHIB token could now drop by 90% (or more). Here’s why.

Looking back at the turn of the 20th century, no asset class has been more consistent in creating wealth for investors than the stock market. Although stocks have had their bad years, the average annual return on stocks easily outstrips gold, oil, real estate and bonds in the very long term.
But in the past few years, cryptocurrencies have literally burned the performance of the stock market. While the big two, Bitcoin (BTC) and Ethereum (ETH), often get all or most of the attention of investors, the meme coin is making headlines right now. Shiba Inu (SHIB).

Shiba Inu has produced life-altering earnings in just over a year

Taking into account a Shiba Inu price today is 0.0000484 dollars (November 4), SHIB tokens have gained about 10,000,000% since its debut 15 months ago. In other words, a € 10 investment in SHIB on its first trading day (August 1, 2020) would be worth around € 1 million and would have been much more, almost double, when SHIB peaked on October 21 in 0.00007821 dollars.

How does a cryptocurrency earn more than 10 million percent in just over a year? These are the catalysts that supported Shiba Inu’s race.

The launch of thedecentralized exchange ShibaSwap in July it allows holders to wager their coins. In doing so, it encourages investors to hold their investment for a longer period of time.

Since the Shiba Inu’s popularity and token price have increased, the number of cryptocurrency exchanges that allow trading on their platforms has also increased. More announcements for SHIB mean a larger community and greater brand recognition.

Billionaire Elon Musk also deserves credit. Though Musk does not own SHIB in his cryptocurrency wallet, recently adopted a Shiba Inu dog named Floki. Whenever Musk tweets about his dog or posts a meme featuring the Shiba Inu dog breed, SHIB investors take it as a cue to drive up the price.

Of course, now the big question is: ‘What are the future prospects for SHIB?‘The answer, if history has a say, expect a steep descent.

History suggests that SHIB is in big trouble

The fact is, nothing is guaranteed in the investment world, and that goes for cryptocurrencies. But more often than not, the story has its say. This is to say that history can provide clues as to what might happen next with a stock, or in this case a very popular cryptocurrency.

Looking back at other payout-focused coins that previously enjoyed monstrous moves higher, a clear trend emerged. In a relatively short period of time, they had lost well over 90% of their value.

Eg, XRP, the previously named token Ripple, it rallied from less than a cent ($ 0.0054) on March 1, 2017 to $ 3.3778 as its closing price on January 7, 2018. That’s a 62,452% gain in 10 months and a week. So, it all fell apart for the momentum-driven XRP. Between profit taking and legal issues, the XRP token returned to $ 0.1396 on March 12, 2020. In just over 26 months, XRP has lost a whopping 96% of its value. And it is far from the only one.

Litecoin (LTC), which has long been considered a silver version of Bitcoin’s gold standard, ‘caught fire’ over a 30-month period. Between May 18, 2015 and December 18, 2017, Litecoin’s tokens increased in value by 24,613%. But by December 14, 2018 (i.e. one year later), i LTC tokens have lost 93% of their value.

Also Nano (NANO), which is one of investors’ favorite cryptocurrencies, has been through similar struggles. On March 10, 2017, cryptocurrency investors could have raised Nano tokens for $ 0.0073. On January 2, 2018, the price reached $ 33.7023, for a gain of 461.575% in less than 10 months. But by March 16, 2020, Nano was back at $ 0.3527 per token, representing a 99% loss from its high.

The story is clear enough that it is virtually impossible to hold on to the life-changing upside in a short amount of time. If history repeats itself, SHIB tokens will lose at least 90% in the weeks, months and possibly years to come.

Build your ideal crypto wallet starting with just € 50

Read also: Three cryptocurrencies with much more potential than Shiba Inu

But wait, there’s more

History isn’t the only issue Shiba Inu is struggling with. As I pointed out earlier, the SHIB token is only accepted by around 100 mostly obscure online merchants, according to the Cryptwerk online business directory. Despite making it into the top 10 cryptocurrencies by market capitalization, Shiba Inu has virtually no use outside the cryptocurrency exchange.

Equally disturbing, the cryptocurrency exchange and the Coinbase ecosystem noted on October 29 that the average wait time for SHIB on its platform was just 11 days. What this tells us is that the Shiba Inu trading is predominantly emotion-based or momentum-driven, with few of its investors actually believing in SHIB’s long-term potential. Presumably, this leaves the Shiba Inu token price open to wild swings.

And perhaps most problematic of all, Shiba Inu offers no competitive advantage. To have a true long-term use possibility, the Shiba Inu should stand out in some way. However, processing time, network capacity, and transaction fees are nothing to write about.

It is impossible to accurately predict when SHIB’s momentum will wear off. But with history as our guide, it’s pretty much a given that this monumental run-up won’t last and perhaps the descent has already begun.

Read also: Shiba Inu continues to run, but these figures should terrify investors

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