Crypto traders are warning investors against investing in tokens fashioned after the Shiba Inu dog breed, citing that the jump in the tokens’ price is unsustainable. Last Monday, Twitter, owned by Elon Musk, replaced its logo with the mascot of Dogecoin, resulting in a surge in both Dogecoin and other Shiba Inu-themed crypto tokens' prices. Dogecoin (DOGE) futures set a record, while smaller tokens such as shiba inu (SHIB), floki (FLOKI), kishu inu (KISHU), and baby dogecoin (BABYDOGE) rallied up to 10%. Additionally, tokens on newer blockchains such as zkDoge and zkShib soared over 100%.

However, developments in the cryptocurrency market are not expected to last long-term. Guilhem Chaumont, CEO of Flowdesk, a crypto trading firm, said that such sporadic surge in prices is not indicative of a larger bull run in the market. He added that the growth of memecoins is the third phase of a typical uptrend cycle after bitcoin and major altcoins, and should not be over-interpreted. Bonnie Cheung, Head of strategy at Sending Labs, reaffirmed these remarks saying that the growth of memecoins is not novel and could fade in the next few days.

At the same time, there is a chance that these tokens could still achieve sustained growth over the long term if their fundamental features are bolstered in the future. For example, Shiba Inu is gaining traction through its layer-2 protocol-- Shibarium-- and Dogecoin is being recognised by the payment world. Kadan, CTO of Komodo, believes that Elon Musk's ongoing support could boost the adoption of cryptocurrency by the mainstream public and be a net positive for the entire crypto space.



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