Cryptocurrency Experts Warn that Shiba Inu May Face a Similar Fate to Terra

Terra‘s collapse understandably caused investors to doubt whether Shiba Inu might be next. Among the currencies that recorded a good recovery this time, Shiba Inu was one of the cryptocurrencies hardest hit by the bear market. However, cryptocurrency experts warn that Shiba Inu is not out of the woods yet. There are many threats around this coin, which may turn it into the next Luna.

“As for the meme coin Shiba Inu, the situation is not optimistic. Our team predicts that its value will be US $0.000018750 by the end of 2022. This will mark that its value has decreased by 7.6% from the current US $0.0000229,” the company said in its latest price forecast report, which was initially published on May 10.

The report further stated that its 36 member expert group predicted that the value of Chivas would “plummet”, closing at US $0.000002500 in 2025 and reaching US $0.000000325 by the end of 2030. To be sure, the value of the finder does not predict whether the token will surge between the two, which means that short-term traders may still make profits when it falls to zero.

Shiba Inu and Luna

According to cryptocurrency experts, Shiba Inu is almost in the same category as Luna. They are projects that are not built on solid products. They have no real use cases. The biggest challenge for the Shiba Inu project is the lack of availability. This is because Shiba Inu started as a memorandum currency and built its huge market value on the basis of speculation, rather than based on real products.

This is why experts warn that Shiba Inu may be the next Terra Luna, especially if whales continue to be sold. The lack of use cases is also considered to be one of the main reasons why the price of Shiba Inu has plummeted in the past six months.

Will the Shiba Inu be Next? A Mix of Ideas

It is understandable that the collapse of tra may cause investors to doubt whether Shiba Inu s will be the next target. There is a simple answer, at least for now. Shiba Inu is not currently linked to any stablecoin available for trading. However, a Chivas stablecoin is under development. Shytoshi Kusama, the main developer of Shiba Inu, recently disclosed in an online article of medium that the stablecoin project is “close to completion”.

A key difference between Shiba Inu stablecoin (Shib) and terrausd is that it will be pegged to US $0.01 instead of US $1. The founder of Shiba Inu believed that this would make the stablecoin more stable.

Shib will be a stablecoin for the algorithm. However, it is not yet known whether the algorithm will attempt to maintain the peg to US $0.01. After Terra’s failure, the holders of Shiba Inu are unlikely to support a stablecoin that may bring Shib down. It seems reasonable to conclude that Shib developers will not adopt a method similar to terrausd’s algorithm.

However, Shiba Inu is not the only investor to be warned. This is not the first time such a warning has been issued. Like Shiba Inu, experts often warn investors that dogecoin may be on the road to dodo at any time. At the time of writing, coinmarketcap locked the price of Doge at about $0.08. After the news that Tesla CEO Elon Musk was going to buy twitter came out, the price of the coin jumped to about 16 cents, but quickly fell to 13 cents in the next few days.