The Freaky Truth Of 1¢ Shiba Inu

What's up, Grandma's guys? Here, so I'll admit I was not planning on making this video. But after getting hundreds of comments, DMs, emails, letters, and smoke signals asking for me to talk about the latest investment craze of Shiba Inu, I had to take a look for myself to see what was going on. And I'll admit I was impressed.

If you thought Dogecoin was a well-performing investment for those that bought in early, turning people into multi-millionaires in two months, Shiba Inu just did that in weeks. While it quickly grew to a 12 billion dollar market cap and became the 12th largest cryptocurrency, trading for just 0.000023 cents each.

Now, headline after headline reads the exact same question: Why is Shiba Inu skyrocketing? Is Shiba Inu the cryptocurrency you should be watching? Shiba Inu sees 50% daily surge. Shiba Inu gains more ground while Dogecoin retreats. Will Shiba Inu make you a millionaire? And will Shiba Inu ever reach one penny?

So let's talk about exactly what's going on, what it is, why it's going up in price so quickly, what this means for you, and what it would actually take for Shiba Inu to be worth one penny based on math. All of this and more on this episode of why is everyone getting rich off this except for me?

But before we start, I'll make you a deal. Since I don't own any Shiba Inu, I will invest five cents for every single like this video gets in the first seven days. That means if you just hit the like button, that's five cents more invested in Shiba Inu just for fun. Plus, to show you I'm good for it, I'll give you proof in exactly a week to show you guys that every single like on this video does count.

So thank you guys so much! And also, a big thank you to Elon Musk for sponsoring this video! Just kidding, guys—there is no sponsor. Let's begin!

Alright, so even though Shiba Inu has a 10-month ROI of 590,000, no big deal. Believe it or not, it's still a relatively new cryptocurrency that was started back in August of 2020, just as its predecessor Dogecoin was beginning to gain momentum.

See, as a background, Dogecoin was created in 2013 as a joke between its creators to make a fun, light-hearted cryptocurrency that was not intimidating to use. It was based around the Shiba Inu Doge meme featuring this cute dog with Comic Sans thoughts popping up. It was never intended to have any real-world purpose or value. The developers never expected it to be anything, but over time, it actually gained a cult-like following.

Then in mid-2020, the unthinkable happened. Shortly after the whole pandemic selling spree, a viral challenge began gaining a lot of momentum on TikTok called the Dogecoin challenge. It made the argument that the value of Dogecoin is worthless, so if all 800 million users of TikTok each invested 25 dollars, they could drive up the value to a dollar and turn that 25 dollars into a ten thousand dollar profit.

Well sure enough, thanks to the virality of that video, the price of Dogecoin did end up going up 43% in 24 hours. That potentially helped give light to a new breed of coin aimed at barking up a new tree and putting Dogecoin back in the doghouse.

So introducing the one, the only Shiba Inu coin! In August of 2020, they released their official white paper, or as they call it, the wolf paper, detailing their intention to be the Dogecoin killer. As they said, "We have the ability to outpace the value of Dogecoin exponentially without ever passing the one penny mark."

Now, unlike Dogecoin, Shiba Inu operates on the Ethereum network, giving it massive scalability across the entire existing ecosystem. In a surprising twist, they gave 50% of the total supply to the Ethereum founder, Vitalik Buterin, as a show of good faith and intention, with hopes of becoming a major disruptor in the market.

Alongside that, they also created what's called Shiba Swap, which allows you to provide liquidity, buy and sell NFTs, and stake your tokens for a nominal return. In their white paper, I mean wolf paper, they also detail their passion for the Shiba Inu breed, with their teddy bear-like noses and swirly curled tails. They note that a portion of Amazon Smile purchases are redistributed to the Shiba Inu Rescue Association to help adorable Shibas in need.

As far as the numbers behind the coin are concerned, it's pretty straightforward. As they say, one quadrillion tokens were minted, and half of that was sent over to Vitalik Buterin, who later donated one billion dollars of that to help fight COVID in India. The remaining 90% of his holdings, worth estimated 6 billion dollars, were sent to an inactive blockchain address and taken out of circulation because he doesn't want the power that means leftover.

There were around 500 trillion Shiba Inu coins in existence. Throughout the last week, the price of those coins has been skyrocketing through the roof. So the obvious question now is why?

Well, I would call it like the perfect storm of events all happening at the exact same time. The most notable comes from none other than the pumper himself, Elon Musk. Now even though Shiba Inu had already seen some momentum, a growing community, and a significant price surge in May of 2021 as it was listed on Binance and a few other major exchanges, when Elon Musk tweets about something, it brings about an entirely new audience who lingers on his every word for their latest investment advice.

With one single picture with the caption "Flokey Frunk Puppy," Shiba Inu is off like a rocket! Now even though there was not technically any indication that this was specifically directed to the Shiba Inu coin, that didn't matter because almost instantly it surged for a hundred percent. It sparked a frenzy, with people believing that perhaps this might be the next Dogecoin that gains mainstream popularity and acceptance—it makes people wildly rich in the process.

But another theory on CoinDesk has a slightly different take on things, and they say this rally can actually be prompted by large Shiba Inu holders known as whales who bought in millions of dollars right before the rally started. This is also around the exact same time that the entire cryptocurrency market began moving higher, with Bitcoin surpassing fifty thousand dollars on the news.

The United States has no intention to ban cryptocurrency, Bank of America admits it's too large to ignore, and U.S. Bank launches a new Bitcoin custody service for institutional investors. In this case, a rising tide lifts all boats, and Shiba Inu to some degree was going to see that momentum alongside with everything else.

On top of that, a post by one of the Shiba Inu developers announced the new NFT project, which would include a token burning mechanism that will continually lower the circulating supply of Shiba Inu and therefore potentially cause the price to go up higher.

So it seems as though a combination of factors all happening at the exact same time caused the price to go up based on not only the token's own functionality but also the promise of making as much money as possible with all the hype and excitement. But then, of course, the question becomes: Is it too late to buy? Is the price unsustainable? And can it ever actually reach one penny?

That's a great question that I'll pretend you asked me, even though I asked myself, and now I will answer my own question. Well, to figure out how much it could be worth in the future and if it could ever reach one penny, we'll need to work backwards. As of now, there are 400 trillion Shiba coins currently in circulation.

However, that's a little bit misleading because Shiba Swap offers a feature called burying, which is just a canine way of saying staking. This is essentially where you temporarily take your coins out of circulation, and the longer you do that, the more rewards you get.

"But Graham, how does that make the price go higher?" Well, let me explain that in a really easy, oversimplified example. Imagine we have a perfect balance of supply and demand for this: exactly one seller for every single buyer. In that case, the price is going to remain stable because there's no other force pushing the price up or down.

But now let's assume that half of those people decide to bury their coins and take them out of circulation. In that case, if the buyer demand remains consistent, well now we have twice as much demand as there is supply. As you would expect, the price is going to rise accordingly.

Well, that's kind of what's happening here on a much, much smaller scale as people can decide to bury their coins. Now, in addition to that, with the announcement of their NFT project, they introduced a new way to take even more of that supply off the market.

As they say, whenever the NFT owner changes the name of one of the 10,000 Shiboshi NFTs, a hundred dollars worth of Shiba will be burnt. If everyone names their Shiboshis, that'll be a one million dollar burn. Although personally, I would just not name your NFT, and that way you would hope that the value remains even higher to the next person who wants to put their name on it. But you know what? That's none of my business.

Now, in all fairness, a one million dollar burn on an 8 billion dollar market cap only reduces the overall supply by 0.000125, so it's barely a difference. But if more and more people bury their coins, that could in theory reduce circulation from the market and drive up the price if there's more demand.

Although I also think it's important that we are realistic here, because naturally, the higher the price goes, the more selling pressure there's going to be from longtime holders who want to cash out with a life-changing amount of money.

At its current market cap, if we're ever expected to see a penny, then either 99% of the circulating supply needs to be burned or significantly more people need to buy in. And by significant, I mean an unprecedented amount of money.

Like assuming 350 trillion Shiba Inu coins are in active circulation, one penny Shiba Inu would give it a market capitalization of 3 trillion, 960 billion, 440 million dollars—or basically, that's more than 50% higher than the entire market capitalization of all cryptocurrencies combined.

So I hate to be the bearer of bad news, but unless there's a major change to the functionality of this coin that removes 99% of it from circulation, one penny Shiba Inu is pretty much impossible for a very, very long time.

Personally, I think the aspect that seems very appealing to quite a lot of people is that it just seems inexpensive. Just from a marketing perspective, it seems like a lot of people have the perception that it's a lot easier for something to go up in value from one penny to two pennies than it is to go from 100 to 200.

Regardless of whether or not that's actually the case, it just gives the illusion that your money is going way further than it actually is. Because all it has to do is go up a fraction of a penny, and you're rich. And not to mention, a thousand dollars could literally buy you 39 million Shibas! It just sounds like a lot.

And if you want to be a Shiba Inu billionaire, well, that's only going to cost you twenty-six thousand dollars. Even though that's still the price of a Honda Civic, owning a billion of anything is impressive, and that perception, in my opinion, is helping drive some of that momentum.

Of course, just like I mentioned, a rising tide lifts all boats. There's also no shortage of Dogecoin and Shiba Inu copycats coming up everywhere. For example, Baby Shiba Inu is now a trending currency, up 600 percent in the last day, and they say that they never forget that this project was born out of a genuine social purpose on a mission to save the world.

Somehow we also have FlokiNomics, up 833 percent in the last 24 hours, which doesn't seem to have any real purpose besides crafting a way for it to benefit the people who hold long enough for the price to go up.

Maybe—oh, by the way, I'm also editing this video right now. It's, uh, midnight, and I found this one, Sheba Pop, that’s up uh, 78%. There are going to be projects that pop up to take advantage of the momentum, and at the core, that's really just what we're seeing.

There's no technical analysis or use case right now that would justify these prices except for the fact that maybe someone else is willing to pay more, with the expectation of turning it around to somebody else who pays even more than that.

Now I will say that even though it's very easy to dismiss momentum as a speculative pump and dump, as more time goes on, I think we really have to take social movement investing seriously. Because the more awareness is raised, the more mainstream adoption tends to follow.

Like with Dogecoin, many people, including myself, underestimated just how powerful a strong community is, and that's helped propel Dogecoin into one of the largest cryptocurrencies in existence, even if it was started as a joke and then pumped by Elon Musk on Twitter.

So I'm not going to be dismissive of Shiba Inu coin simply because there is value and momentum and excitement. But it's also just as important to be made aware that usually, the faster it could go up, the faster it could also fall.

And if you're also up a life-changing amount of money, there's no shame in taking some of the profit off the table. Now, obviously, the price might continue to go up, and the attention could lead to widespread adoption throughout other projects.

But sudden momentum like this gets me very anxious until it finds its footing. So take this all with a grain of salt and don't listen to me because I am dumb.

I've also been very surprised with the past performance of Dogecoin, so if there's one thing I've learned, it's not to underestimate the power of the Shiba Inu brand. And like I said, just for fun, I will invest five cents for every single like this video gets in the first week, and then I'm going to be holding it for a year.

So feel free to do your best—like the video—and then I will report back once that purchase is made. So with that said, you guys, thank you so much for watching! I really appreciate it. As always, make sure to subscribe, hit the notification bell, feel free to add me on Instagram and my second channel, The Graham Stefan Show! I post there every single day I'm not posting here.

So if you want to see a brand new video from me every single day, then make sure to add yourself to that. So again, lots of great stuff in the description—it's a lot. So anyway, thank you guys so much for watching, and until next time!