Since the start of October, when SHIB began taking off, the Dogecoin clone has posted 280% gains. Its unreal run of form, combined with meme coin status, has led some purists, including Ran Neuner, to say now is a solid shorting opportunity.
More recently, investor and former hedge fund manager Michael Burry joined in with the criticism by calling Shiba Inu “pointless.”
However, the Shib Army remains unfazed, with one Twitter user (named $SHIB KNIGHT) remaining steadfast in his calls for a $0.01 $SHIB. To put some perspective on matters, Shiba Inu would need a 34,000% increase for that to happen.
While stranger things have happened in crypto, based on the current circulating supply, a $0.01 token value would mean a $4 trillion market cap for $SHIB – a huge ask if ever there was one.
— $SHIB KNIGHT (@army_shiba) October 10, 2021
What did Burry say about Shiba Inu?
Coinbase added Shiba Inu in mid-September. While the announcement did not explicitly say this was due to customer demand, it implied this by referring to its listing process in the post.
“One of the most common requests we hear from customers is to be able to buy and sell more cryptocurrencies on Coinbase. We announced a process for listing assets, designed in part to accelerate the addition of more cryptocurrencies.”
$SHIB spiked 36% on the day of listing, followed by a two-week downturn until the start of October. From there, Shiba Inu spiked hard, blasting through $0.00000914 resistance on October 4.
Nonetheless, Burry rejects Shiba Inu on the grounds of its high total supply, which is set at one quadrillion (1,000,000,000,000,000) tokens. This, he suggests, makes $SHIB a poor investment choice, given the effect of abundant supply on price appreciation.
“Just saying, one quadrillion seconds is about 32 million years. One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”
Haters gonna hate
While critics a quick to dismiss Shiba Inu, it’s worth remembering Dogecoin faced similar calls earlier this year.
At its peak in May, the Dogecoin market cap was close to $90 billion, making it more valuable than the likes of Dell, General Motors, and British American Tobacco, much to the annoyance of the purists.
They struggled to wrap their heads around how a fundamentally weak project could hit 15,000% gains over a five-month period.
Although it’s unlikely Shiba Inu will “do a Dogecoin,” who’s brave enough to say markets are always rational?
Ad: Up to 20x margin on FTX.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Like what you see? Subscribe for updates.