Here’s Why Shiba Inu Unlikely to Create More Millionaires

While Shiba Inu gained fame for previously turning many investors into millionaires, its capacity to replicate that success now appears doubtful.

Shiba Inu’s rise to fame in 2021 has remained one of the most popular stories in the crypto market. At the time, the cryptocurrency recorded an explosive rally that turned several early believers into overnight millionaires.

However, Shiba Inu appears to be behind its golden days in recent times. The token, which once rallied over 150 million percent within 14 months, has since endured a lackluster performance for several years.

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Why Shiba Inu Might Not Create More Millionaires Like Before

Speculation about Shiba Inu turning new investors into millionaires has significantly faded in recent times. Several key factors support this skepticism.

Anonymous Team and Lack of Transparency

Since its launch in August 2020, Shiba Inu’s core developers have remained anonymous. This continues to raise doubts about the project’s long-term vision and accountability.

From SHIB’s founder, known by the pseudonym “Ryoshi,” to its lead developers, nearly every key figure behind the project has chosen to remain anonymous.

Investors initially found this secrecy intriguing during the early meme coin cycle. However, the team’s continued preference for anonymity now puts SHIB at a disadvantage, especially in today’s market, where transparency and credibility are crucial, according to some commentators..

Slow Project Development and Unfinished Deliverables

Shiba Inu’s growth over the years, particularly its transition from a token to an ecosystem, has been impressive. The team has promised ambitious projects for its ecosystem, such as Shibarium, ShibaSwap, Shib: The Metaverse, Shib Marketplace, and a Layer-3 blockchain, among others.

While some of these projects are fully functional, many remain incomplete. For instance, there have been fewer updates about the promised SHIB Marketplace and the L3 privacy-focused blockchain. The team has also yet to complete its metaverse project, leaving many investors frustrated.

This has weakened Shiba Inu’s image as a serious project with long-term utility.

Shibarium Hack Shakes Investors’ Confidence

The launch of Shiba Inu’s L2 blockchain, Shibarium, in 2023 was celebrated as a key milestone for attracting more investors into the ecosystem and boosting the adoption of SHIB.

However, the blockchain recently suffered a devastating attack that saw hackers siphon over $4 million worth of assets. This setback eroded the confidence of holders who had been banking on Shibarium as a catalyst for SHIB’s growth.

Shiba Inu Negative Price Action

Although Shiba Inu saw impressive gains in its early days, its current performance has left many investors dissatisfied. The token has remained stuck around the $0.00001 level for months, even as other altcoins have rallied significantly.

As of now, SHIB is trading at $0.00001247, down 41% year-to-date, 15.11% over the past year, 9.44% over the past week, and 4.18% in the last 24 hours. Amid this prolonged stagnation, many investors who once dreamed of becoming millionaires are left holding a token that struggles to keep up with the broader market.

Losing Top 20 Position

Shiba Inu, which earlier aimed to reclaim a spot in the top 10 cryptocurrencies, has now dropped out of the top 20. It currently ranks as the 22nd-largest cryptocurrency, with a market cap of $7.33 billion.

Falling in the rankings means reduced visibility to new investors, further limiting SHIB’s chances of repeating past gains and diminishing its potential to create new millionaires.

Declining Community Support

One of the key drivers behind Shiba Inu’s meteoric rise in 2021 was the unwavering support from its community, known as the “ShibArmy.”

This grassroots movement played a critical role in securing listings on major exchanges like Binance. However, following SHIB’s underwhelming performance, community support has dwindled.

Many early supporters are now promoting other tokens, which has reduced SHIB’s visibility and momentum.

Lack of Institutional Recognition and ETF Filing

While Bitcoin, Ethereum, and even meme coins like Dogecoin have gained traction through institutional adoption and ETF filings, Shiba Inu remains excluded. No asset manager has filed with the SEC to launch a SHIB-focused ETF in the U.S.

While some community stakeholders speculate that SHIB could draw an ETF filing after Coinbase recently introduced SHIB futures, no asset manager has publicly confirmed such plans.

Without ETF support, SHIB has a limited chance of attracting serious institutional investment, which hampers its long-term sustainability and adoption potential.

Massive Supply

Shiba Inu’s enormous token supply continues to be a major obstacle. Despite more than 410 trillion SHIB being burned, over 589 trillion tokens remain in circulation.

This excessive supply poses a challenge for the token to replicate its earlier explosive rallies, making the millionaire dream increasingly unlikely.

Rising Competition

Shiba Inu is also contending with intense competition from a surge of newer tokens that have captured the interest of investors. This year alone has seen the launch of multiple meme-based projects, including Donald Trump’s official meme coin and other celebrity-backed tokens.

As this trend gains momentum, investor attention increasingly shifts towards these new entrants, leaving SHIB struggling with waning demand. 

Conclusion

Given Shiba Inu’s anonymous leadership, delayed projects, recent security issues, and declining momentum, the cryptocurrency may no longer be well-positioned to create new millionaires as it once did.

For perspective, turning a $1,000 investment into $1 million would require SHIB’s price to climb from $0.00001245 to $0.01245.

However, many consider such a target unrealistic given Shiba Inu’s massive circulating supply of 589 trillion tokens. At that price, SHIB’s market cap would reach $7.33 trillion, exceeding the combined valuation of Apple and Google.