Shiba Inu (CCC:SHIB-USD) crypto was recently listed on Coinbase Global (NASDAQ:COIN) on Sept. 15. Coinbase is the largest crypto-only exchange in the world. For Shiba Inu to get listed there was quite a feat. This caused the weirdly-priced crypto to rise substantially.
For example, before it was listed, the price was $0.000006722, or .0006722 cents. CoinMarketCap has the best chart to view the coin’s price action, as it is more detailed than most other sites’ data. As of Sept. 30, CoinMarketCap ranked Shiba Inu as the 47th largest crypto.
After Sept. 15, Shiba Inu shot up to a peak around .0009182 cents on Sept. 16. This represents a gain of 36.6%.
However, since Sept. 16, Shiba Inu’s price has drifted lower. As of Sept. 30 it was at .00725 cents per Shiba crypto token. Nevertheless, that means the crypto token is still up 7.85% from its price before the listing.
Where This Leaves Shiba Inu
Decrypt magazine makes a very good point about the rise of SHIB. It talks about the purpose of meme tokens like Shiba Inu. First, the magazine describes what the purpose is not:
“The main purpose of the current crop of meme tokens isn’t to unlock a utility on some protocol or to deploy as votes on governance decisions…”
Their actual purpose is far different:
“It’s to trade them with the hope that a critical mass of users will develop, as happened with Dogecoin in the early days.“
In fact, Decrypt says this has happened with the establishment of ShibaSwap, a profitable SHIB-based decentralized exchange. ShibaSwap allows users to trade, pool and stake the cryptocurrency. There are a number of videos on social media about how you can trade and buy Shiba Inu crypto on this exchange and trade them for other coins and tokens.
However, since Coinbase and Binance have both listed Shiba crypto, the ShibaSwap exchange has probably lost a good deal of its utility. You can trade almost any major cryptocurrency on these two major exchanges.
But as I pointed out in my last article, Shiba crypto is an Ethereum (CCC:ETH-USD)-based altcoin that is basically there to mimic Dogecoin (CCC:DOGE-USD). Dogecoin followers eventually hope it will become a method of payment.
What to Do With Shiba Crypto
To say the least, this is a highly speculative potential investment. Most people should probably not own this crypto unless they have a high degree of patience, and frankly a gambling mentality. Or, you should at least have a curious spirit and a willingness to lose your money in any investment in Shiba crypto.
That probably rules out 99% of most investors. I own Dogecoin, but I do not own Shiba Inu cryptocurrency as even I think it is too speculative.
That, by the way, does not mean that SHIB’s price won’t rise. It could easily do so over the next year, depending on what news comes out. That is exactly what happened when the crypto spiked after the news of the Coinbase listing.
But, of course, Shiba Inu’s price then drifted down. This shows that this is a highly volatile crypto that is not suitable for most investors.
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On the date of publication, Mark R. Hake held a long position in Ethereum and Dogecoin but did not own any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.