As you guys should know by now, there was a massive SHIBA INU token pump just last week (or this week depending on where you live). And it surged like 300% over. Of course at the moment is it going down as investors start taking profits. This is very normal after such a pump. And people attributed the pump to Elon Musk’s tweet about his puppy – which if you think about it is kind of insane. Are investors so trigger happy, crazy and cash rich to bet on something like someone’s tweet, especially consider the said person had crashed the crypto market once before? It has now became the 13th largest cryptocurrency by marketcap. Again that is insane. I had thought the crazy pump by DOGECOIN a few months back was insane. But this one really takes the cake.
Although I admit that SHIBA INU token probably has better tokenomics than DOGECOIN but still it is a meme coin. Yes sure they have whatever swap exchange or something but in the end, it is still a meme coin that people just speculate on. Again I have nothing against speculation, but this has really gone out of hand right? It is the same DOEGCOIN saga happening once again. Just imagine what happened to the so called investors who had bought into leveraging for SHIBA INU. The same thing happened to all those DOGECOIN investors – they will get burn when the price goes tumbling down. The DOGECOIN all time high in May was around USD 0.68 and even after this recent pump, the price is still USD 0.25 or so.
There have been reports that the recent pump for SHIBA INU token was actually not due to Elon Musk’s tweet but actually by whales who had bought a good number of tokens a few days before the pump. You can read up on the article here. The purchase happened on 30th Sept which was before the actual pump of its price. So this could possibly be the result of market manipulation. An interesting excerpt from the article states – “While the whale moves on SHIB may give a glimpse of how the pump may have been triggered, the high amount of whale transactions may not be the best news for SHIBArmy because according to Santiment, it often coincides with a local price top.” Now isn’t that interesting. If you are thinking of joining this “SHIBArmy”, you might want to consider that again. This is just an example of history repeating itself. We small time investors are often the ones that are left hanging. I often tell my readers not to go into such meme coins and most importantly never leverage on such coins. I understand that it kind of look tempting and all the FOMO that comes with it. But come on, we will never beat the whales in this game. So why join them?
For those who don’t know, the recent pump for SHIBA INU did not reach the previous all time high for the token. Yes, it happened before around early May as well. And we all know what happened after that pump right?
One reply on “My thoughts on the recent SHIBA pump”
[…] people finding excuses to pump a project before the inevitable dump occurs. Looking at the recent SHIBA INU pump tells me that this is still more or less play. Perhaps the VET team might want to start some […]