clock menu more-arrow no yes

Filed under:

Shiba Inu coin experts say Shib could crash soon, even if it rises high

Multiple experts said Shiba Inu coin could have a major crash, even after it has a lot of success

Pictures of dog bowl, which mimics baby doge.
Multiple experts said Shiba Inu coin could have a major crash, even after it has a lot of success.
Illustration by Alex Cochran, Deseret News

Two experts recently explained why Shiba Inu coin might crash soon, even if it experiences a meteoric rise.

Why might Shiba Inu crash?

Creative Planning CEO Peter Mallouk said Shiba Inu coin won’t find much success down the road, crashing after it makes a major rise.

  • “Shiba Inu is going to zero,” he said. “It may go to the moon first, but it’s going to be a round trip with a crash landing.”

Bedrock Capital founder Geoff Lewis compared Shiba Inu coin to, a website that has become linked to the internet crash of the early 2000s.

At the time, the website rose to insane popularity as the internet began to balloon with new businesses, companies and websites. But that bubble eventually exploded, causing a massive crash in value, according to AMB Crypto.

Is Shiba Inu coin a good investment?

Johnny Lyu, the CEO of the world’s third-largest crypto exchange KuCoin, said Shiba Inu coin is a good long-term investment since there’s so much movement among young investors.

  • “Seeing bitcoin’s rise, some younger investors without a lot of money want to profit from crypto as well,” Lyu said, per MarketWatch. “But you’d need over $60,000 to buy one bitcoin. So they turn to Dogecoin and SHIB, where you buy tons using just $100.” A bitcoin can be divided into 100 million satoshi, its smallest unit.
  • “These investors are very passionate about such tokens and are determined to push the prices higher,” Lyu said, according to MarketWatch.

That said, the Financial Conduct Authority said cryptocurrencies, like Shiba Inu coin and Dogecoin, can be risky for investment because they have such a fast-moving market.

  • “Investing in cryptoassets, or investments and lending linked to them generally involves taking very high risks with investors’ money,” FCA’s statement said. “If consumers invest in these types of product, they should be prepared to lose all their money.”