The price of Shiba Inu token has climbed back to $0.44, after crashing earlier in the week.
Its price rocketed by 36 per cent on Monday, but the boom period did not last long.
Monday’s growth came after the coin’s developers announced a gaming partnership, which could provide a window into its future.
The meme cryptocurrency has failed to regain the heights of its $0.000088 record in late October.
But investors will be hoping its venture into the metaverse will put it back on the uptick.
What’s going on with Shiba Inu?
Shiba Inu now has over one million investors. The milestone appears to have prompted its developers to explore further growth, with a move into gaming and the metaverse.
Metaverse-related coins like SAND and MANA have been booming in popularity over the last month, after Facebook announced it was changing the name of its overarching company to Meta.
CEO Mark Zuckerberg also made a number of comments about the metaverse – a digital universe that allows humans to interact as avatars, letting people work, shop, learn and play in virtual reality spaces without being physically together.
He told Facebook’s annual conference: “Over time, I hope that we are seen as a metaverse company and I want to anchor our work and our identity on what we’re building towards.”
Shiba Inu has hired William Volk, former vice-president of technology for Activision, to lead its charge into gaming.
Developer Shytoshi Kusama said in a blog post: “The only way to create a seven-figure game that is worthy of one million FriendShibs is to find a perfectly fitting AAA studio and build it with them. However, landing a great AAA game studio that has worked with the likes of Disney and Warner Bros isn’t enough. To manage making a game, from concept to completion, requires dedication, experience, connections and wisdom that only a few people can provide.
“I’m happy to announce that the consultant who will lead the charge for the Shiba Inu Games version of the Shiboshi game is none other than William David Volk. Will has seen the vision in full (and knows the AAA studio) so I’m actually excited to share his quote on working with on this unique project:
“I am honoured to be working with an amazing team on what will become one of the most significant games of all time.”
What could happen next?
Shiba hiring such a big name shows it has ambitions bigger than simply being a meme cryptocurrency.
Jordan McCreery, founding partner of Ingrained Media, is very bullish on its future. “I believe Shiba has some real potential to grow from its fraction of a cent amount to $0.01 or greater,” he said.
Don Guo, CEO of fintech firm Broctagon, said it is impossible for Shiba Inu to ever reach the heights of $1. “In order for SHIB to reach a dollar, it requires a market capitalisation of one quadrillion US dollars,” he told The Express.
“In comparison, the entirety of the US national debt is $23.3 trillion – and even that staggering sum constitutes less than 3 per cent of the amount required for SHIB to reach that price point.
“Given current trends, it is more likely that Shiba will remain within its ballpark of less than a fraction of a cent.”
Should I invest in Shiba Inu?
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority (FCA) warned in January: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown previously explained the risks to i.
She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”