The meme-based cryptocurrency Shiba Inu coin has seen a massive drop in the last month, signaling a potential loss of interest from investors.
Per Benzinga, Shiba Inu coin dropped 60% in value since its October peak. More so, social media interest in Shib coin dropped 29.2% in the last week.
- “The coin’s social dominance was down 38.6%, in line with its declining market cap, which fell 12% over the last seven days to $21 billion at the time of publication,” according to Benzinga.
Alex Krüger, an independent market analyst, said that the decline of Shiba Inu coin’s social interest suggests that the coin may be topping out, which means investors might be selling off their coins, according to Coin Telegraph.
It doesn’t help that Shiba Inu cryptocurrency coin has been the victim of a recent scam. The official Twitter account for Shib coin warned of a new scam surrounding the coin, which has been “traveling social media, and other communication platforms.”
- The Shiba Inu coin team said that “a fake Shiba Telegram group is being shared across all social media. The scammers impersonate official accounts and create fake users. These scammers reply to general posts.”
That said, we’ve seen this from Shiba Inu coin before. The coin relies heavily on social media interest. When there’s high interest, the coin will soar in value, which will then increase the interest and the value. Over time, the interest wanes and the coin becomes less valuable as investors sell off their investment.
Despite these shifts, Johnny Lyu, the CEO of KuCoin. the world’s third-largest crypto exchange, said Shiba Inu coin could be a good long-term investment since people continue to show interest, according to MarketWatch.
- “These investors are very passionate about such tokens and are determined to push the prices higher,” Lyu said, according to MarketWatch.
The Financial Conduct Authority said cryptocurrencies can be a risky investment since they have volatile markets, though.
- “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.”
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