The memes-based Shiba Inu cryptocurrency coin has seen a massive drop in the past month, signaling a potential loss of interest from investors.
Through Benzinga, the Shiba Inu coin has lost 60% of its value since its peak in October. More so, social media interest in the Shib coin fell 29.2% last week.
- “The coin’s social dominance is down 38.6%, in line with its declining market cap, which has fallen 12% in the past seven days to $ 21 billion at the time of publication,” according to Benzinga.
Alex kruger, an independent market analyst, said the decline in social interest in the Shiba Inu coin suggests the coin could peak, meaning investors could sell their coins, according to Coin operated telegraph.
It doesn’t help that the Shiba Inu cryptocurrency coin has been the victim of a recent scam. The official Twitter account for the piece Shib warned of a new scam surrounding the coin, which has “traveled to social media and other communication platforms.”
- The Shiba Inu Coin Team stated that “a fake Shiba Telegram group is being shared on all social media. The crooks pose as official accounts and create fake users. These crooks respond to general messages.
Having said that, we have seen this from the Shiba Inu coin before. The play relies heavily on social media interest. When the interest is high, the value of the coin will skyrocket, which in turn will increase the interest and value. Over time, interest decreases and the coin loses value as investors sell their investment.
Despite these changes, Johnny lyu, the CEO of KuCoin. third largest crypto exchange in the world, said the Shiba Inu coin could be a good long-term investment as people continue to show interest, according to MarketWatch.
- “These investors are very passionate about these tokens and are determined to push the prices up,” Lyu said, according to MarketWatch.
The Financial conduct authority said cryptocurrencies can be a risky investment as they have volatile markets, however.
- “Investing in crypto-assets, or related investments and loans usually involves taking very high risks with investor money” The FCA statement says. “If consumers invest in these types of products, they should be prepared to lose all of their money. “