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Saturday, June 25, 2022

SHIB – En route to the moon or is a tragic crash landing in coming

Shiba Inu token prices continue to influence and be influenced by events in the real world. Even the demand for Shiba Inu puppies has increased on the back of this surge. Yet despite these catalysts, Shiba Inu could be on the verge of having its bubble burst any day. While it’s not uncommon for digital currencies to be volatile, SHIB may wind up losing the vast majority of its value in the months that lie ahead.

Irrespective of this ‘get-rick-quick’ narrative concerning this token, some individuals have dismissed or rather neglected the SHIB token frenzy.

Bedrock Capital founder took to Twitter to express his narrative that includes a ‘bubble’. Geoff Lewis, regardless of the market craze compared this canine mania to Pets.com. A name that was synonymous with the internet bubble in the late 1990s or early 2000s. He believes that SHIB now exactly aligns with the online pet store in 2000 right before, the bubble burst. He tweeted:

“Ruff” time ahead?

Let’s explore this analogy.

Pets.com, a pet essential store became an instant hit just months after the company’s birth in February 1999. To add to this, Online retail giant Amazon even acquired a 54% stake in the enterprise, just a month later. And that’s not it. Moreover, the company spent around $1.2 million on commercials to further boost its sales. It even released its IPO on Nasdaq in the same year. Overall, it spent nearly $11 million, however, the input was the main problem. Its revenue accounted for a mere $619,000 from the sale of pet accessories and supplies.

Soon everything turned south. Pets.com was liquidated in just 268 days after it started trading on Nasdaq. It became one of the biggest disasters, as its stock collapsed from the peak of $14 to just around $0.19.

That’s why it was compared to a dot-com bubble. Talking about one bubble to another, SHIB was the latest target for the same. Mainly due to its unprecedented hikes. Consider the graph below,

Source: CoinMarketCap

Using the same narrative, could SHIB fall all way down to zero? Several crypto enthusiasts have predicted its steep fall. Creative Planning CEO Peter Mallouk opined,

Another one, in a recent tweet, the former National Security Agency consultant, Edward Snowden too rode this anti-SHIB bandwagon.

Now having said that, one would agree on this. SHIB has been a victim to an infinite amount of FUD since its inception. There’s no denying this. Just recently, despite a massive 40% correction, it was quick to recover. Furthermore, this comeback aided SHIB to enter the top 5 coins by daily trading volume.

Meanwhile, different exchange platforms already supported the flagship token. So were these just baseless noise?

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