- Dogecoin pushed Shiba Inu coin to 500 percent surge
- How Dogecoin has inspired many other ‘joke’ crypto
The massive success meme coin, Dogecoin has enjoyed over the past weeks has rubbed off clone crypto, Shiba Inu (SHIB) token, which is now up by around 500 percent in just one week.
Similar to what happened in 2017 when several small-cap cryptos gained massive rise for no reason, it appeared to be forks of each other, promising great things but never really delivering and derive their value from hype alone. A similar thing is believed to be happening with Dogecoin and Shiba Inu token.
Dogecoin and Shiba Inu token
Dogecoin inspired the clone crypto coin. It rose by 500 percent despite having no backing or any actual underlying product apart from a massive community ready to hype it and purchase the coin in massive quantity.
Per the Shiba Inu token website, it states that it aims to kill Dogecoin and allow users to buy billions or even trillions of the token, emphasizing its massive supply. The coin also has a decentralized exchange called Shiba Swap that is yet to be launched as people still rush the coin prior to its launch.
The massive gain the clone coin records have eclipsed the ‘meme/volatile’ currencies like Dogecoin, let alone more secure risk-adjusted investments like BTC or ETH.
The vast majority of currencies that see similar gains often end up popping – for example, WRAFT INU, a recent DOGE-inspired fork on BSC, is down over 95 percent from its highs.
Coins in these categories usually fail when there are no solid underlying fundamentals or a valid use case which guarantees they fail and eventually make no impact.
How Doge has inspired many other ‘joke’ crypto coin
The coin was created as a joke. However, it has made a market cap of almost $100B, which nobody believed could have been possible for the meme coin. This rise has been backed by the world’s second-richest man, Elon Musk, and he has continued to tweet about the crypto and would hold a SNL episode on Saturday featuring Dogecoin.
However, the coin has made it evident for people to know that something with little to no real-world usage can skyrocket to insane valuations simply because people collectively believe in its value.
Beyond Shiba Inu, Dogecoin has inspired many other ‘useless’ token on Solana and Binance Smart Chain networks, which aim to be the next Dogecoin.