After GameStop and AMC staged a short rolling battle in early 2021, meme investing is becoming increasingly popular.
Meme investing, or retail holdout investing driven by social media, is on the rise, with stocks like AMC and GameStop rising thousands of percentage points, and this hype and meme-driven investing has entered the cryptocurrency space.
The two hot spots in the crypto world for meme concepts – dogcoin and shiba coin – are not considered good value investments, with shiba coin being riskier and more rewarding, while dogcoin may be a relatively safer long-term play.
Meme investing is growing in popularity after GameStop and AMC staged a short-rolling war in early 2021.
Short rolling is when a stock that a short seller is bearish on rises sharply instead of falling, and the short can only buy the stock at a higher price to return the previously borrowed shares as a way to prevent a bigger loss. meme investing is a speculative psychology for retail investors, not based on the fundamentals of a company. The idea is that if everyone just buys and never sells, prices will soar and everyone will get rich. As one would expect, this type of investment is extremely risky, with far more losers than winners in the game, and very few people come out in one piece.
The cryptocurrency model of dogcoin dates back to 2013 when it was worthless, however, in early 2021, the price of dogcoin began to climb, reaching a high of 70 cents and a market cap of even more than $90 billion. Despite the recent price correction to around 30 cents, the price is still more than 100,000% higher than before.
Dogcoin has no use other than payment, has an inflation rate of 5%, and is dependent on the security of the Litecoin blockchain. Despite having no value, dogcoin still quickly became the heartthrob of Elon Musk, who also borrowed tweets to stimulate the rise of dogcoin. The revenue generated by dogcoin has attracted many projects to follow suit, using exaggerated hype to trick users into buying tokens.
With billions of tokens like Safemoon and Dogcoin in circulation with little investment value, and each token priced as low as $0.0000001, investors thought the price would easily reach $1 and they would all be millionaires by then. The market cap is determined by the total supply of tokens multiplied by the price. If a token reaches $1, multiplied by the total supply of 5 billion, the market cap of a token will exceed the entire U.S. stock market.
Recently, the Shiba Inu coin came to prominence as it was launched on the Ether blockchain in August 2020 with a total supply of 1 trillion coins. There is little reason for the rise of Shiba Inu coin, but it continues to grow at a rate of 12,000x.
Future plans for ShibaCoin plan to launch ShibaSwap, which will be designed for decentralized trading and allow users to buy and sell on the ethereum blockchain. shibaSwap will also launch two other tokens, LEASH and BONE, both of which have unknown use cases associated with exchanges, and more information will be released when ShibaSwap is launched.
There is no case study on the use of LEASH or BONE. In addition, ShibaSwap will most likely become a clone of Uniswap and has no value to the DeFi ecosystem.
Neither Dogcoin nor ShibaSwap seem to be good investment options at this time. The advantage of Shiba Inu coin is that it is smaller, has more room for appreciation, and may stimulate another wave if ShibaSwap succeeds in going live. The disadvantage is that Shiba Inu coin has just appeared less than a year ago, which is not enough to prove its real value. If the market continues to be depressed, investors will lose interest in Shiba coin and move to safer cryptocurrencies. On the contrary, Dogcoin has survived multiple crashes, proving that investors are interested in it. Dogcoin has managed to gain a foothold in the top 100 cryptocurrencies with the support of big names like Mark Cuban, Elon Musk and others. Dogcoin seems to be a less risky investment than Shiba Inu coin. But any meme investment is always a crisis.
Even if dogcoin has a chance to soar, the reality is that it is still a gamble in nature and not a real investment. In other words, dogcoin will never become the world’s digital reserve asset, and as Elon Musk said, “The most ironic outcome is that dogcoin becomes the future currency of the planet.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/which-is-the-better-investment-dogcoin-or-shiba-inu-coin/
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