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Shiba Inu coin has reached an all-time high. Should you invest?

Shiba Inu coin has reached an all-time high yet again. But does that mean you should invest?

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Shiba Inu cryptocurrency token continues to raise as it joins Coinbase.

Shiba Inu coin has reached an all-time high yet again. But does that mean you should invest?

Illustration by Alex Cochran, Deseret News

The Shiba Inu cryptocurrency coin reached an all-time high on Wednesday, hitting a cost of $0.0000594 per coin. But that doesn’t mean you should rush to invest.

The cryptocurrency coin — which started off as a “Dogecoin killer,” meant to replace the popular cryptocurrency Dogecoin — has grabbed a lot of attention in recent weeks, becoming the 11th most popular crypto coin in the world.

  • In the last seven days alone, the coin’s value has risen 111%, per CoinMarketCap.

So yeah, despite what some naysayers have said, the coin is experiencing a rebound of sorts. But that doesn’t mean investing in Shiba Inu coin is the right move if you haven’t done your research.

Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, told CNBC that potential investors need to research the crypto token first.

  • “Before investing in any cryptocurrency, it’s important to understand what you’re investing in and the associated risks, not just hype around it,” Boneparth said.

Indeed, the market for Shiba Inu coin is highly volatile. For every major spike, there’s a huge dip when investors sell off their coins. Social media hype and excitement around the coin often contribute to its value and price.

Hoping for success isn’t a good tactic either. “Hope is not a strategy,” according to InvestorPlace.com. And it doesn’t help that Shiba Inu hasn’t made itself viable as a long-term investment yet, either.

  • “While crypto millionaires are a real thing, the use cases and utility set each coin apart,” InvestorPlace.com reported. “Although Shiba Inu has an excellent development team, they have not set the coin apart in terms of functionality. Ultimately, purchasing something with no inherent fundamental value is not a prudent financial decision.”