Among the coins that have recorded a good recovery this time is Shiba Inu, which had been one of the cryptocurrencies hardest hit by the bear market. But cryptocurrency experts warn that Shiba Inu is not out of the woods yet. There are still many threats surrounding this coin that could turn it into the next Luna.
"Things are not looking good for the meme coin Shiba Inu, with our panel expecting it to be worth US$0.000018750 by the end of 2022. This would mark a 7.6% drop in its value from its current price of US$0.00002029," the company said in its latest price prediction report, originally published on May 10.
The report further said that its group of 36 experts expected Shiba Inu's value to "plummet" and close at US$0.000002500 in 2025 and US$0.000000325 by 2030-end. To be sure, Finder's values don't predict if the token can see a surge in-between, which means that short-term traders may still make profits as it falls to zero.
According to crypto experts, Shiba Inu is almost in the same category as Luna. They are projects that have not been built on a solid product. They have no real use cases. The biggest challenge for the Shiba Inu project is the lack of usability. This is because Shiba Inu started as a meme currency and built its huge market cap based on hype and not on a real product.
This is why experts warn that Shiba Inu could be the next Terra Luna, especially if the whales continue to sell. Lack of use cases has also been identified as one of the main reasons why the price of Shiba Inu has plummeted in the last 6 months.
The Terra meltdown could understandably cause investors to wonder if Shiba Inu might be next. There's an easy answer, at least for now: No. Shiba Inu isn't currently linked with any stablecoin available for trading. However, there is a Shiba Inu stablecoin in development. Lead Shiba Inu developer Shytoshi Kusama recently revealed in an online post on Medium that the stablecoin project "is nearing completion." One key difference between the Shiba Inu stablecoin (referred to as SHIB) and TerraUSD is that it will be pegged to US$0.01 rather than US$1. Shiba Inu's founder believes that this will make stablecoin even more stable.
SHIB will be an algorithmic stablecoin. However, it's unknown at this point whether or not how the algorithm will attempt to maintain its peg to the US$0.01. After the Terra debacle, Shiba Inu holders would be unlikely to support a stablecoin that held the potential to bring down SHIB. It also seems reasonable to conclude that the SHIB developers wouldn't adopt a similar approach used with TerraUSD's algorithm.
However, Shiba Inu isn't the only coin that investors are being warned of. Neither is it the first time that such warnings have been issued. Like Shiba, experts have often warned investors that Dogecoin could go the way of the dodo any day. The price of DOGE was pegged at around US$0.08 at the time of writing, by Coinmarketcap. The coin's price had jumped to around 16 cents after the news that Tesla CEO Elon Musk was going to buy Twitter but quickly fell to 13 cents in a matter of days after that.
