Feb 24, 2022
1. Experts say the community growth is fake
The community members have destroyed over 239 million and 400 million tokens respectively in December and November. But no matter how many tokens they burn, the demand keeps falling at a potentially higher rate, resulting in a market crash.
2. Its functionalities are still weak
Shiba Inu’s developers will wait until ETH’s planned upgrade can resolve these challenges. In the meantime, SHIB can continue working on expanding its functionalities and creating an immersive metaverse experience.
3. SHIB possesses no edge over others
Shiba Inu is constrained by the limitations of the bigger blockchain. And for a programmable blockchain that utilizes smart contracts like Shiba Inu, it’s all about attracting more developers to the ecosystem.
4. Possesses very fewer real-world use cases
5. Still no institutional adoption
There are many cryptocurrencies that threaten to replace fiat currencies. But there is still no evidence or speculation that Shiba Inu will be facing any institutional adoption in the coming years.
6. SHIB’s ownership is way too concentrated
The token lacks utility and is heavily concentrated with very few accounts, both of which create a substantial risk for the investors.
7. Shiba Inu has heavy-weight competitors
Even though Shiba Inu is considered one of the biggest meme coins in the market, the crypto has even bigger competitors, besides Dogecoin, which include Ethereum, Solana, and Cardano.
8. The emergence of more crypto regulations
The presence of regulations in the market can bring unforeseen circumstances, driving away several investors. This phenomenon does not only limit itself to Shiba Inu.
9. Very limited potential for gains
Bitcoin drove the value of the entire crypto market to US$3 trillion within a matter of months, whereas Shiba Inu has very limited potential for gains, discouraging investors from getting on board with the crypto.
10. Shiba Inu’s popularity is fading
The crypto has not been performing well, and its chances of success are much lower than anticipated. .
Shiba Inu might bounce back, but right now, investors are willing to sell the crypto for smart investments.