Crypto pundit Neil Patel has outlined several reasons investors should avoid viewing Shiba Inu as a viable investment.
Like many crypto assets, Shiba Inu has suffered a sharp decline in recent months and continues to trade below $0.00001. Currently, it is at $0.000008215, representing a massive 90.72% drop from its all-time high of $0.00008845.
Despite this downturn, some community members argue that SHIB’s current price, especially compared to its explosive 2021 bull run, offers a buying opportunity.
However, Patel, co-founder of Neil Patel Digital, disagrees. Instead, he has cautioned investors against the token, pointing to three concerns that, in his view, make SHIB an unattractive investment at this time.
Patel’s primary concern is that Shiba Inu fails to address any real-world problem. He argues that SHIB belongs to a group of crypto assets with little to no practical utility.
While Bitcoin positions itself as a potential hedge against inflation and Ethereum enables real-world asset tokenization, Shiba Inu, in contrast, does not offer a specific solution to a tangible problem.
As a result, Patel believes SHIB’s price movements depend heavily on the broader crypto market rather than on its own fundamentals. He maintains that ecosystem developments have had little to no influence on SHIB’s price action.
Although the project boasts initiatives such as Shibarium, a metaverse, and a decentralized exchange, he notes that these products have recorded minimal adoption, limiting their impact on the token’s value.
Secondly, Patel points out that the community momentum that drove Shiba Inu to its all-time high in 2021 has faded. He believes this decline in enthusiasm is directly related to the token’s sharp price drop.
Essentially, the view suggests that waning momentum signals a loss of investor interest and a growing perception that SHIB is no longer a compelling investment.
Lastly, Patel argues that while speculative trading will always exist, investors should avoid allocating capital to SHIB when stronger alternatives are available. He highlights Bitcoin as a more suitable option, emphasizing that it addresses systemic issues in the global monetary system.
Meanwhile, Patel’s remarks echo concerns raised by some Shiba Inu community members in recent times. Many critics have urged investors to exercise caution when considering SHIB, pointing to several recurring issues.
Community members have increasingly speculated that the Shiba Inu team avoids accountability by operating behind pseudonyms and concealing their identities during significant events.
These concerns intensified after K9 Finance DAO, Shiba Inu’s official liquid staking partner, revealed that SHIB developers had stopped responding to messages related to efforts to recover funds lost in the Shibarium Bridge hack.
Consequently, the K9 Finance team warned that it could reassess its relationship with the Shiba Inu ecosystem if developers fail to compensate affected users.
Another major concern centers on Shiba Inu’s enormous token supply, estimated at around 589 trillion SHIB. Critics argue that such a vast supply significantly limits the token’s upside potential and makes ambitious price targets like $0.001 or $0.01 highly unrealistic.
At $0.01, SHIB’s market cap would need to reach approximately $5.89 trillion, an extremely challenging benchmark for a meme-based project.
Moreover, large-scale token burns appear unlikely, as the majority of SHIB remains in holders’ hands, and few are willing to destroy assets they own.
Read more on The Crypto Basic – Bitcoin, Cryptocurrency, DeFi Topics And News
