Shiba Inu Just Broke The Internet

What's up, Dogecoin? It's Shiba Inu here, and well, that was fast! Just a week ago, I covered my thoughts about the latest cryptocurrency seemingly overtaking the entire market, cannibalizing everything in its path, and quickly turning some people into multi-millionaires in the process. And that would be Shiba Inu.

See, by the time I made my first video, I thought I was late to the game. Shiba Inu had already increased 400 percent! It was already the front page headline of most major news outlets, and I had my doubts that such strong momentum would continue even further. But I was absolutely wrong! In the last 48 hours, Shiba Inu rallied another 350 percent; it temporarily overtook Dogecoin as the eighth largest cryptocurrency by market cap.

The demand was so strong that it completely broke CoinBase for an entire afternoon and temporarily caused a glitch that grew my account to $266 million, even though that was quickly fixed unfortunately!

Anyways, several Shiba Inu whales continue to buy hundreds of billions of tokens at a time. Let's talk about this new price increase, how this one wallet turned $8,000 to Shiba Inu into a $5.7 billion fortune, if this could overtake Dogecoin again, and my concerns with the current momentum.

Whether you're currently invested and want to know how much higher it could go, or you're thinking about buying in, but you don’t want to be left with the possibility of potentially holding the bag if the price falls, all of that and more on this episode.

I will invest another five cents in Shiba Inu for every single like this video gets in the first seven days. Yeah, the last time we did this we got over a hundred thousand likes, and I bought over 266 million Shiba Inu tokens as a result to support the Shiba Army. So thank you guys so much! And also, I'm going to be donating all of the ad revenue in this video towards Mr. BEAST's campaign to save the ocean, but more on that later.

Alright, so as usual, for those unfamiliar with the insanity of Shiba Inu and their plan to overtake the entirety of Dogecoin, here’s what you need to know so that you’re completely brought up to speed. Oh, and by the way, if you're already a Shiba Inu expert and you want to skip a bit of the backstory, just go ahead and skip to this timestamp right here.

But otherwise, here's where it starts: as most of us know, Shiba Inu was somewhat mirrored off its predecessor Dogecoin, which was created in 2013 as a joke between its creators to make a fun, light-hearted cryptocurrency that wasn't intimidating to use. It was based around the Shiba Inu Doge meme, featuring this cute dog with Comic Sans thoughts popping up.

Even though it was never intended to have any real-world purpose or value, it slowly gained a cult-like following, and in 2020, it began to skyrocket, all thanks to a viral TikTok video known as the Dogecoin Challenge. This video made the argument that Dogecoin is practically worthless, and if all 800 million users of TikTok each invested $25, they could drive up the value to a dollar and turn that into a nearly $10,000 profit.

Well, sure enough, thanks to the virality of that video, the price of Dogecoin increased 43% in 48 hours. And only 45 days after that, in August of 2020, Shiba Inu was born. In their official white paper, they detailed their intention to become the Dogecoin killer with the ability to outpace the value of Dogecoin exponentially without ever crossing the one penny mark.

Now, in terms of the fundamentals themselves, Shiba Inu operates within the Ethereum network, giving it massive scalability across their entire existing ecosystem. They also created their platform, Shiba Swap, which allows you to provide liquidity, buy and sell NFTs, and stake your tokens for a return.

Now the downside, however, is that even though it seems relatively cheap to buy in, that is because there's a lot of them in circulation—over 400 trillion to be exact—so there needs to be a lot of momentum and a lot of new people buying and holding for the price to go up, of which is happening.

Throughout the last week, excitement began to grow about the potential of Shiba Inu being listed on Robinhood, prompted by a Change.org petition with now over 400,000 signatures and growing. The premise is that if Robin allows Shiba Inu to be traded on their platform, that would expose the roughly 20 million users to a brand new investment opportunity and therefore drive up the price alongside with it.

Not to mention, the announcement of a Robinhood listing alone is likely enough to cause a short-term momentum-based boost as people try to price in the value of a brand new audience. And as we could see, that's actually happened before with Dogecoin.

If we use that as an example, when they listed back in July of 2018, the price of Dogecoin did end up almost doubling with an increase of 95%. But that was also short-lived, and within a month, it was trading back down to its original price before being listed, suggesting that in the short term, Robinhood would have an effect on the price, but it likely wouldn't be big enough to have an impact long-term.

Although despite the success of the Change.org petition, Robinhood recently responded by saying, "Our customers want new coins, but we're having to carefully evaluate whether we could add new coins in a way that's safe for customers and in line with regulatory requirements."

Or in other words, in terms of Robinhood listing Shiba Inu, here's my best guess as to why that has not happened yet: First, they're now a publicly traded company in the eye of massive scrutiny, and because of that, there's way more red tape about adding a new cryptocurrency near their all-time high.

Like on the surface, we know they have the capability of doing it because, after all, Book.com (Graham) recently announced that you could buy and sell Shiba Inu on their platform. And I even bought some there just recently to show my support. So the functionality is absolutely there.

But given the recent scare of SEC regulation with Robinhood and the controversy of their practice of payment for order flow, most likely it's a complicated process and they're waiting for regulatory guidance to give them the okay to move forward.

The second, Robinhood might not be prepared to handle the influx demand for Shiba Inu during a time when it's trading at peak attention, and that is likely to impact their ability to roll it out on a large scale. That's why they often introduce a waitlist, test out functionality, work up the bugs, and then eventually roll it out for everybody.

And third, since Shiba Inu is so volatile, Robinhood runs the risk of liquidity problems or a potential trading halt, like what we previously seen throughout the Dogecoin SNL episode, where Robinhood didn't have the liquidity to process orders and trading was frozen. Obviously, this is not a good look for them at all, especially since not even CoinBase could keep up with demand; their website crashed due to excessive volume.

So Robinhood could likely be worried about another fallout affecting their platform, and Shiba Inu has already proven that it has the capability to shut down servers that are not prepared for the sudden influx. But until then, let's be real—they know they should list Shiba Inu. They've acknowledged the Change.org petition, and it's bound to bring in a lot of new money.

Maybe it'll happen in the next few days or the next few months; nobody knows at this point, and it's probably going to happen when we all least expect it!

Although the Robinhood listing is really only the tip of the iceberg in terms of why Shiba Inu is going up in price. And that, of course, brings us to this: On Wednesday, it was announced that $160 million of smart money began buying into Shiba Inu, helping fuel some of the recent rally we saw over the last 48 hours.

It was also found that Shiba transactions worth at least a million dollars started increasing since the beginning of October, including one person who bought in $43 million worth around October 1st, causing the price to spike five percent in the process. Even on Tuesday, another whale bought $11.5 million worth of Shiba Inu, signaling that perhaps they've been gearing up for these substantial returns that we've seen throughout the last week.

As a result, Shiba Inu briefly overtook Dogecoin in a remarkable event where it became one of the largest cryptocurrencies by market cap, meaning it did officially beat Dogecoin without ever crossing the one penny mark. At this point, it's almost like a cryptocurrency tug-of-war to see who's top dog.

And even though Shiba Inu has come a long way in this last year, there are some downsides worth talking about, because nothing just goes up forever indefinitely without some bumps along the way.

First, attention generates money, and for something like Shiba Inu, the attention begins to fade; so will the price. Like, it’s really important to consider that right now Shiba Inu is the third most searched cryptocurrency of 2021, right behind Bitcoin and Ethereum.

However, just like everything else before it, there will be a point where the excitement begins to fade, the price begins to drop, people begin to panic, and things begin to settle down and normalize. Even though Shiba Inu has surpassed every single one of my expectations, we shouldn't be naive to think that there can't be a substantial price drop along the way, and that is absolutely going to coincide with how much attention it gets or how much it doesn't get.

The second, it was found that eight whales control 70 percent of the Shiba Inu supply, meaning they have the power to influence the market for good or for bad. Some of this could simply be the result of a very well-timed investment, like this guy who turned $17 of Shiba Inu into $13.5 million.

But overall, if any of these holders decide to sell, that would very well put downward pressure on the market, and that's at least something to be considered.

The third, quite a few people have been mentioning this wallet here, which purchased $8,000 of Shiba Inu in August of 2020, and now it's worth $5.2 billion today—potentially being the greatest trade of all time! And even though we don't know if this person was an early developer, a brokerage, or a very lucky individual who happened to win the greatest lottery of all time, it is a bit concerning to know that one person has that large of an influence on the market, especially when we have no idea what their intention is.

And even though it's a very, very slim chance, if that person happens to be watching this video right now and wants to come on anonymously to share their thoughts, I would be more than happy to have you on! But either way, the last outbound transaction within that account occurred 194 days ago.

It's safe to say they've not made a move yet, but that's not to say they won't in the future, or maybe they just lost their passphrase, in which case, yikes!

And fourth, there’s recently been some talk about CoinMarketCap increasing the circulating supply of Shiba Inu to 549 trillion coins, up from 394 trillion. So obviously this would be a very big deal—150 trillion coins entered circulation!

So I tried to get to the bottom of it, and admittedly, I’m still just as confused. On the one hand, the product leader Shiba Inu just issued a statement that Shiba can’t add supply. If a website reports an increase in circulating supply, that’s the website’s issue and not ours, nor does it change the value.

Try asking CoinMarketCap and stop saying stupid stuff like we added coins—just stop it! Now, another responded by posting a screenshot from CoinMarketCap who explained that it was just a bug from the migration to a new infrastructure and that their team is looking into it.

But also keep in mind that this is Twitter, and unless they post that publicly, just take it with a grain of salt. No other is that 394 trillion was an inaccurate number to begin with, and since roughly 410 trillion coins were initially burned, CoinBase is now showing the correct number, even though it's higher than what people initially expected.

There's really not a clear answer here, but either way, I don't think this should have that big of an impact on the value, since technically what's there is already there, and they’re not adding any more Shiba Inu coins to circulation.

However, with all of that said, the obvious question now becomes: what's in store for the future of Shiba Inu, and can it eventually reach the elusive one penny?

Well, as far as reaching a penny is concerned, I’ll be the first to admit that honestly anything could happen at this point; nothing surprises me anymore! And if Dogecoin could reach close to a dollar, then Shiba Inu has the potential to eventually reach a penny.

Although just remember, it's still going to be a long, long, long, long, long ways to get there. Just as a visual, the Twitter user Income Sharks made a graph so you could see exactly what it looks like as of now. Here we are, and if we see the latest run up 24 more times, we would reach a price of one tenth of one cent.

And if that happens, the market cap of Shiba Inu would be worth about $600 billion, or bigger than the Ethereum network it was based from. But we're still not there—not quite yet!

If that run-up happens 11 more times, we could reach one penny, and the result would be a market cap of $6 trillion for Shiba Inu, or in other words, bigger than Tesla, Amazon, Apple, and Facebook combined.

Obviously, for us to then see a dollar, multiply that by a hundred, and needless to say, there’s not enough money in existence to make that happen unless Nancy Pelosi has anything to do with it. That was a joke. But at the current rate, either in excess of 95 percent of the circulating supply would need to be burned, meaning almost everybody would have to give up almost everything that they own, or one penny is going to be out of reach for the near future.

I'm not gonna say it's ever impossible to happen, because I have been shocked about the growth so far, but I would also be realistic about what's currently possible and whether or not you're willing to hold on in the long term to make that a reality.

I also wouldn't be surprised that in the pursuit of chasing higher returns, other cryptocurrencies end up seeing a runoff of that momentum, including Floki Inu. See, just like Dogecoin was created as a joke, and Shiba Inu was started to overtake that joke, if we take inception one step further, Floki Inu is created to overtake the coin that overtakes a joke and then beat both of them at the exact same time.

I know this sounds crazy, but on June 25th, when Elon Musk tweeted that a Shiba Inu will be named Floki, a team of developers from the Shiba Inu community recognized that this had the potential to become a trend. So they created Floki Inu coin, also based on the Ethereum network.

It was perfectly positioned so that when Elon Musk announced that he had adopted his puppy Floki on September 12th, their coin was all ready to go. And now it’s up 80 percent in the last 24 hours after trading relatively sideways for a few months.

In a way, it almost feels like the people who missed out on Dogecoin, who also missed out on Shiba Inu, are now plunging into Floki Inu simply because they feel that something else has to go up. So why not this?

After all, if we look at the white papers, they say that they’re a movement working on an NFT gaming metaverse—not to be confused with Facebook—a merchandise marketplace known as Floki Places, and an education platform known as Floki University.

Even though these projects are ambitious, they even admit themselves that the ability of eccentric billionaire Elon Musk to move the markets is unparalleled, and this time around, it's going to be with Floki Inu. And most likely it's going to capitalize on the joke coin, turn joke coin killer, turned killer of the joke coin.

Will people move from one to the next trying to chase the next big opportunity? But it’s important to recognize that at least right now what you're really investing in is momentum, attention, and investor psychology—that’s it!

With cryptocurrency, I have just been humbled in so many different ways that I no longer believe anything is impossible. And truly right now, anything could happen. I just think for many people cryptocurrency represents a way out; it's a ticket to build wealth.

And even just having the chance to increase in price gives people the faith that it’s all going to be okay. Of course, that’s not always the case, and many times people buy in at your all-time highs and then lose almost everything.

But if you acknowledge it for what it is, understand that you’re buying into momentum during a run-up, be reasonable with your expectations, take some profits along the way, think logically about whether or not something is actually feasible, and always smash the like button for the YouTube algorithm, you’re going to be okay!

But really quick, before we end, I just want to remind you that all of the ad revenue of this video is being donated to Team Seas to help clean up the oceans. It’s incredibly important to do! I’ll link to them down below in the description, and I really appreciate your support too.

So with that said, you guys, thank you so much for watching! Make sure to also subscribe, hit the notification bell, feel free to add me on Instagram, and on 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, make sure to add yourself to that. Thank you so much for watching, and until next time!