Shiba Inu cryptocurrency coin — a meme-based cryptocurrency with a massive following online — might not always be a smart investment for people because, well, people don’t hold onto the coin for very long.
New data from the cryptocurrency exchange Coinbase suggests different cryptocurrencies have different median holding times, meaning that buyers hold onto their investments for different periods of time. Per The Motley Fool, here’s a breakdown of median hold times for different crypto tokens.
But Shiba Inu coin — the meme-bases crypto token that has soared into popularity — has one of the lowest hold times to date. The median for Shiba Inu coins is 10 days, according to The Motley Fool.
- “With Shiba Inu ‘hodlers’ having the ability to stake their coins to earn interest, we’d expect to see this median hold time rise considerably,” according to The Motley Fool. “The fact that it hasn’t suggests two things. It implies that emotion-driven day-traders are running this show and, secondly, suggests that investors are taking their profits and looking elsewhere.
- Another takeaway — “conviction in SHIB’s long-term prospects as a payment coin aren’t as high as you might think,” according to The Motley Fool.
That said, Shiba Inu coin recently reached an all-time high in value, and it continues to perform well even though there are a lot of doubters, as I wrote for the Deseret News. The coin has seen so much success from social media discussion and its community, giving it a leg up compared to other cryptocurrencies.
Still, Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, told CNBC that investors should do their research before dropping money into the crypto coin.
- “Before investing in any cryptocurrency, it’s important to understand what you’re investing in and the associated risks, not just hype around it,” Boneparth said.
According to InvestorPlace.com, Shiba Inu hasn’t made itself viable as a long-term investment yet as people continue to make short-term gains. Hoping for long-term success isn’t a great solution.
- “While crypto millionaires are a real thing, the use cases and utility set each coin apart,” InvestorPlace.com reported. “Although Shiba Inu has an excellent development team, they have not set the coin apart in terms of functionality. Ultimately, purchasing something with no inherent fundamental value is not a prudent financial decision.”