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▲ Shiba Inu (SHIB)/AI Generated Image ©
While Shiba Inu (SHIB) continues to attract new investors with its past spectacular returns, there is a growing chorus of warnings that realistic risk factors, such as extreme volatility and regulatory blind spots, must be confronted.
According to crypto media outlet Watcher.Guru on May 10 (local time), Shiba Inu was considered one of the top-performing assets during the 2021 bull market, delivering enormous profits with little capital in a short period. However, experts reminded that SHIB is a representative memecoin and clearly stated that it belongs to the highest-risk asset class in the market.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) classify memecoins as 'digital collectibles' that do not receive the protection of securities laws. Specifically, according to an SEC statement released in February 2025, purchasers and holders of memecoins are not protected by federal securities laws, and these assets do not guarantee reasonable profit expectations. This implies that financial authorities do not endorse the intrinsic value appreciation of assets like SHIB.
Due to the highly speculative nature of memecoins, price volatility in uncertain market conditions is extremely drastic. Indeed, SHIB has plummeted by over 90% from its all-time high of $0.00008616 recorded in October 2021. Such a sharp price drop is pointed out as a risk factor that can lead to significant losses for new investors.
The goal of reaching a price of '1 cent ($0.01) to 1 dollar' claimed by some enthusiastic fans is also predominantly analyzed as highly unrealistic. Currently, SHIB's circulating supply amounts to approximately 589 trillion tokens, and if the price per token reaches that target, the market capitalization would reach an astronomical figure beyond imagination. Experts assessed that such a scenario is very unlikely to occur in reality.
In conclusion, while Shiba Inu remains a popular cryptocurrency, investors must exercise extreme caution when allocating funds to high-risk assets. The media added that memecoin investments, especially those with inadequate institutional safeguards, should be decided carefully with a full understanding of the asset's volatility.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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