Shiba Inu coins are one of the newest cryptocurrencies out there – we summarize five things you need to know.
Crypto fans are on the lookout for the next success story to follow Bitcoin.
Buying cryptocurrencies and decentralized financial tokens, as well as stocks and shares, is a risky business.
Investing is not a guaranteed way of making money. So make sure you know the risks and can afford to lose the money.
Cryptocurrencies are also very volatile, so your money can go up as well as down in the blink of an eye.
As always, you should never invest in something you don’t understand.
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1. Shiba Inu is a sign
Shiba Inu coins are cryptocurrency meme tokens and allow users to hold trillions of them, according to their website.
These tokens are listed in ShibaSwap, its own decentralized exchange, and provided with incentives.
The website claims to have blocked 50 percent of its entire supply of Uniswap, while the remainder was burned to Ethereum founder Vitalik Buterin.
The tokens share the same Shiba Inu dog as Dogecoin, which has been gaining popularity recently.
2. Its value has increased in 24 hours
Shiba inu is currently valued at $ 0.00003026, compared to a lower value of $ 0.0000006 in mid-April according to CoinMarketCap.
At the time of writing, it’s up nearly 130 percent in 24 hours, but it’s obviously assuming a low number so the increases seem bigger.
In comparison, Dogecoin is currently worth $ 0.51 – up from $ 0.005 at the start of the year.
Thanks to the recent surge in value of the Shiba-Inu coin, some Dogecoin look alikes have done well.
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3. The aim is to replicate the success of Dogecoin
Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, told The Sun that the token was “created” to give Dogecoin a run for its money.
She added, “It features the same dog turned into a meme and aims to replicate the success of Dogecoin in turning a joke into a money machine.”
Dogecoin has risen in value thanks to the support of celebrities, while a number of Reddit threads also called for a $ 1 per coin value.
On the Shiba token website it says: “With the nickname Dogecoin-Killer, this Erc-20 token can stay (relatively speaking) well under a cent and surpass Dogecoin in a short time.”
4. Investing is risky and you could lose it all
Investing in cryptocurrencies is essentially a game of chance and there is no guarantee that you will see what you are paying for to gain in value.
Cryptocurrencies are very high risk and a speculative investment with limited track records and no underlying value.
There is also no guarantee that you will be able to convert crypto assets back into cash as this may depend on the demand and supply in the existing market.
Ms. Streeter said, “Investors should treat cryptocurrency trading with extreme caution and frolic on the edges of their investment portfolios, only with money they can afford to lose.”
Nigel Green, CEO of deVere Group, added: “Extreme caution is required before investing in untested cryptocurrencies.
“It is to be expected that price fluctuations will be wild and there is a risk that investors will get burned.
“There are big differences between Bitcoin products that are state-of-the-art and only have a limited supply, which means that they have a shortage like gold, among other things. and unknown digital tokens that appear to have no inherent value. “
5. Warning of new cryptocoins
It is unclear whether Shiba Inu is legitimate. Very little is known about it and it could mean your money is at greater risk.
Newer cryptocurrencies are the riskiest as it is harder to tell if they are legitimate.
This means that you are more open to cheating.
UK crypto asset firms must register with the Financial Conduct Authority – and you can check to see if they are on the financial services registry or if they are on a list of companies with temporary registration.
There is also a list of unregistered companies. If they are on this list, they may be working illegally.
Even if they are on the list, the city guard is not responsible for regulating them and they have no power over how they do business with customers.
In essence, it is very difficult to tell which companies are real and which are scammers.
Cryptocurrency firms are also not as regulated as other financial firms, which means you won’t have any protection if something goes wrong.
For example, you cannot file a complaint with the Financial Ombudsman Service.
In January, the UK’s Financial Conduct Authority warned people that they risk losing all of their money by investing in cryptocurrencies.
Meanwhile, an ad for a Bitcoin exchange Coinfloor was banned in March to let savers know that cryptocurrencies are a safe investment.
Individuals considering investing in Bitcoin or stocks and shares have also been warned of “risky” tips shared on TikTok.
How to Spot Crypto Scams
Crypto scams are popping up all over the internet. We explain how to recognize them:
Promise of a high or guaranteed return: does the offer look realistic? Scammers often attract money by making false promises.
Strong Marketing and Promotional Offers: If they are using marketing tricks to convince customers, be careful.
Unnamed or nonexistent team members: As with any company, you should be able to easily find out who is running it.
Check the white paper: every crypto company should have a white paper. This should explain how it wants to grow and make money. If this doesn’t make sense, it could be because the founders are trying to confuse you.
Do Your Research: Check the online reviews and Reddit threads to see what other people think.
This story was originally published on The Sun and is reproduced here with permission