Investing on $SHIB
How did you learn about $SHIB and their upcoming platform, ShibaSwap?
I noticed the market starting to ramp up into a full-on bull last fall, when I was relatively dormant in my trading, as I already had most of my good fundamental choices happily making their gains.
As things started to get spicy, I started looking for newer projects. Anyone knows, with enough time in crypto, low-to-mid-caps explode in these environments. I was getting somewhat bored with my current projects, so pivoting a bit more of my portfolio to play with volatile low-caps seemed like a good use of time.
$SHIB popped up for me right before the initial spike. I grabbed a good bag and held on since. I’ve picked up more after interacting with the developers and admin team, and seeing their attitude toward their project.
Given it’s experimental nature, what do you think will prevent $SHIB from following the path of so many other coins and fading away?
As is the case with any crypto, the only assurance you have of staying relevant is grabbing a portion of market share and fighting to not let it go. What “market” you’re in is determined by your use case, so things can have multiple purposes. $SHIB falls into a combination of a fun meme token, and a soon-to-be decentralized exchange with yield farming elements. These two markets can function separately, but together they are able to support each other.
There is plenty of space in the DEX world for more players, and will be for a long time to come. $SHIB has the benefit of still being relatively early to market, and can play on the strengths of the “fun factor” to increase usage of its exchange, making it more appealing for newcomers to crypto, in particular. As long as continuous development is done on the platform, fading away should not be an issue for a very long time, if ever.
What do you think will happen if $SHIB becomes the base coin in ShibaSwap, considering that burns and air drops are nearly impossible at the moment?
I can only speculate on this one, but, personally, I prefer that to be the case. APY yield farms tend to be inherently inflationary if their base token is also the yield token. This can be mitigated through several means, but it is always an uphill battle that absolutely requires adoption by more people to maintain stability. This is especially true of very high yield farms, which, if interest is ever lost or moves to something else, the value per token is guaranteed to drop significantly.
By not having the option to do this with $SHIB as the base token, it is insulated from these inflationary mechanics, and the use case is “you need it to interact with our platform”. This gives buyers reason to hold on to the token long term, as it will be a requirement to provide them with the rewards they are looking for. As for how they deal with inflation and market dynamics on the yield token, that has yet to be seen. Several platforms do this well via burns, airdrops, or providing increasing use cases and farms for said token , etc.
As a whale, what are you most excited about when you think about $SHIB?
What is exciting to me is bridging the technological gap to the people. Crypto is confusing and weird to most, and DEXs multiply that even more. You need to figure out how to get $ETH, then get it into a wallet that you can trade on a DEX with, then understand gas fees and probably screw it up the first time. After all that and probably losing at least $30 in gas, you might get what you were initially seeking. Then you might forget your password and never saved your keys somewhere safe, so it’s gone anyway.
Will ShibaSwap solve the problem of confusion? No, because no single investor or token can change that. But what it does do is give people the incentive to want to try, based on the same premise as $DOGE. $DOGE got a ton of people involved that had never touched crypto because it was fun.
ShibaSwap represents a bridge from the world of regular people who can’t understand blockchain (no matter how many terrible analogies you give them) to those of us who are confident in this environment. The average person may choose to learn to use ShibaSwap, just because the whole platform and community are fun. This introduces an entirely new demographic to why decentralized finance is such a big deal.
Just like me back in 2013, everyone needs their first, interesting pull to get them hooked on crypto. I believe $SHIB represents that.
What can you say to those who are only focused on price fluctuation?
I can say that there are a lot of people getting into crypto for the first time, and watching the “money printer go BRRRR” is fun. But because investors don’t have a lot of tangible evidence to prove a crypto is healthy, they are subject to panic sell-offs and big money manipulation. Price obsession is the name of the game for low caps and unsure markets.
As time goes on, and with a platform launch, the fickle nature of “just a meme coin” tends to fade. Use cases, time, and partnerships provide market stability as things grow and evolve. As I tell most people new to crypto: the fastest way to lose money is not doing your due diligence, picking the project you invest in, and being impatient.
What is your long term investment strategy with Shib?
I need to be somewhat vague on this one. SHIB is still in its infancy in valuation. I’m not much for swing trading personally, I usually just DCA the things I see a future in.
I absolutely do see a future in this project, so my strategy boils down to “lets see what the team can do”. After having spoken to a number of them, I am feeling confident about that choice. As said previously, there is a massive amount of space for more DEXs to exist. $SHIB doesn’t need to beat Uniswap, it just needs to attract a portion of the market.