Doge coin and Shiba token continue to keep getting so much media attention and hype, so I decided I would answer the question: should you buy Doge coin or Shiba token?
To save you a lot of time, the answer to that question is neither.
To explain why Doge isn’t a good idea only takes 3 points:
– Doge fees are 73x the fees of competing digital cash cryptocurrencies.
o If you were to argue it’s digital cash, then you can’t compare to Bitcoin, you should compare it to Bitcoin Cash or Dash, which currently have fees less than 1 cent while Doge is 73x at 73 cents. There are many other coins that are significantly cheaper, too, like Litecoin, currently with fees of $0.024.
o You can compare fees here: https://bitinfocharts.com/comparison/transactionfees-doge-ltc-bch-dash.html#3y
– They require millions of dollars per day just to not decline in value.
o Doge produces approximately 10,000 coins per minute which is around 14,000,000 per day. Thus they require 14 million x the current price of Doge ($0.29107) = $4,074,980, just to keep the price from falling if the inflation is accounted for. Obviously, they don’t actually need that full amount as the inflation doesn’t reflect immediately, but technically they should require millions of dollars coming in daily in order to not decline in value.
– It doesn’t have good tokenomics or fundamentals.
o The founders abandoned the project and there is little to no development or future for Doge, and it’s completely reliant on hype, and celebrity endorsement doesn’t work, which we know, and I have covered in the past.
The explanation as to why Shiba Inu ERC20 tokens aren’t a good idea requires a little more effort. These four points should sum it up:
– People have a lot of misconceptions about the token, like that there are redistributions to followers, it’s deflationary, there are burns for every transaction, etc.
o There are currently over 410 trillions coins that have been burned listed here in the burn address, which also clearly shows there aren’t coins being sent for every transaction but rather individuals who are freely burning tokens: https://etherscan.io/token/0x95ad61b0a150d79219dcf64e1e6cc01f0b64c4ce?a=0xdead000000000000000042069420694206942069
o In fact, you can follow this Twitter account that updates you every time someone does voluntarily burn tokens: https://twitter.com/shibburn
– So what is Shiba Inu token for then, what is its use case?
o You hold it in hopes it will go up in value and stake it to earn bone, leash, and other sub-tokens for them to create an inflationary system without having to lessen the value of Shiba Inu to do so. Basically, it’s like any other DeFi yield token trying to copy the same basic model as the rest.
– The major issue with its model currently is the ETH gas fees.
o To claim rewards, buy it in a decentralized, use their swap exchange, send it, sell it, and virtually anything you do with this token, you are paying extremely high ETH gas fees. While this will be somewhat alleviated in Q1 2022, it’s still so expensive that it inhibits it from being a useful token unless you only intend to hold.
– They claimed to have thrown away the keys to all of the tokens locked in Uniswap
o I think that generally explains why you want to stay away from this token, but don’t take it from me, take it from the creator and written clearly in the whitepaper: https://github.com/shytoshikusama/woofwoofpaper/raw/main/SHIBA_INU_WOOF_WOOF.pdf
o This is found here: https://shibatoken.com/
o In the whitepaper, he clearly states on page 14 that they locked their remaining tokens into Uniswap, and “we threw away the keys.” To me, that is the perfect setup for a future rug pull, how can you verify that they truly did this? What happened to “Don’t trust, verify” being the original motto of the crypto community? It seems people have stopped caring about this ethos. Let’s bring back “Don’t trust, verify” in a real way and start doing it.
– There is a large debate around what has actually been burned and how much is actually circulating
o Coinmarket recently increased the supply by 155 trillion, and there is an ongoing debate whether or not to include the 40 trillion in the India COVID relief fund. Refer to this article the explains more: https://www.gfinityesports.com/cryptocurrency/shiba-inu-coin-circulating-supply-changes-coinmarketcap-shib/
Below are a few more Shiba token briefs I referred to:
https://www.coinspeaker.com/guides/introduction-to-shiba-inu-shib/
Have you invested in Doge or Shiba? Do you think they are going to keep going up? What are the use cases of Shiba and Doge? Did I miss anything, or was I wrong about anything? Let me know what you think about this in the comments below, and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*
👥 Support Me & Follow Me Elsewhere 👥
👉 http://www.scottcbusiness.com
Ask questions in my Telegram: https://t.me/cryptoandthings
You can find all my cryptocurrency addresses on https://cointr.ee/scottcbusiness
You can find the rest of my sponsorship, referral, donation, and extra information here: https://read.cash/@scottcbusiness/sponsorships-referral-support-resource-f7efb629
