One of the many notable things about Dogecoin is the number of imitations it generates. Its astounding price increase has inspired over 150 pet-themed pieces including Shiba Inu, Baby Doge Coin, Doge Killer, Daddy Doge, and Queen of Shiba. There is a whole range of coins that are hoping to cash in on Doge’s fever.
Dogecoin was created in 2013 as a joke. It didn’t care how people bought parts they didn’t understand. His funny character has attracted a whole community of fans, who call themselves “Shibes”. Since then, a series of unexpected events – in large part, the attention of Tesla CEO Elon Musk – has pushed Doge into the top 10 cryptos by market cap.
Dogecoin may be here to stay
Despite some early scandals, which pushed the two founders of the play to distance themselves from the project, Shibes remained loyal. The price of the coin has increased by over 6,000% since the start of the year.
Mark Cuban, an avid crypto billionaire and Shark Tank judge, recently said he believes Dogecoin could work as a form of digital payment, mainly because people use it. Dogecoin is now available at most of the major cryptocurrency exchanges and can be used as a form of payment in a few stores (although they are not large retailers), including Cuba’s Dallas Mavericks.
Additionally, after years with little strategic direction from Doge, the Dogecoin Foundation is reforming with the help of various people including Vitalik Buterin of Ethereum, Doge co-founder Billy Markus and Musk representative Jared Birchall. Finally, the $ 40 billion market-cap crypto will have someone at the helm.
But what about other pet parts and memes? Is there any hope for Shiba Inu or Baby Doge Coin? Or will we see a bunch of abandoned puppy parts languishing in abandoned parts lists in the years to come?
Here are five reasons I wouldn’t buy one.
1. There are too many pet parts and they are all very similar.
I did a quick count of coins on CoinMarketCap that contained “shib”, “inu”, “dog” or “cat” to get an idea of how many pet coins are on the market. This is by no means an exhaustive list, but there were over 150.
There is a very small chance that one or two of these coins will perform well, but it is very unlikely that any of them can really replicate the success of Dogecoin. And given that they don’t really have any solid business plans or fundamentals, it’s nearly impossible to identify which ones could, perhaps, potentially be successful. It’s not investing, it’s playing.
2. They are fertile ground for crooks
It is very easy for crypto scammers to profit from Doge Fever. Since these coins have no fundamental value, scammers can create a new coin, generate advertising to raise the price, and then sell.
People are so afraid of missing out on the next Dogecoin that they buy without fully researching the coin or the people behind it. It’s hard to put a number on the number of pet parts that are scams, but many of the latest scams and hacks listed on tokensniffer.com (a site dedicated to scam detection) are Doge impersonators.
3. I invest for the long term
As we touched on above, pet parts could generate some short-term gains. People are willing to speculate a small amount of money on the possibility of hitting the jackpot, which drives up the price.
I prefer to put my money in cryptocurrencies which I think are likely to perform well over time. Cryptocurrencies are unpredictable enough already, so I’m researching what problem the coin solves and who is involved in the project, along with other factors. This way I can try to gauge the likelihood that they will be successful in the long run.
4. A lot of these pieces don’t have leaders I trust.
We don’t have a space to review the leadership of each pet room here. But take one of the bigger ones, Shiba Inu – his leadership is anonymous. It’s a red flag for any crypto project. Before buying a coin, it’s a good idea to find out who’s behind it, what their credentials are, and if they’ve been involved in cryptocurrency scams.
5. Most pet parts have no purpose
The magic of Dogecoin is that it has captured people’s hearts and minds which is crucial if you want to sell a product. But, beyond being a joke, it had no point. In contrast, other cryptocurrencies are investing energy in technical development and using blockchain technology to solve problems. There are lessons they can learn from Dogecoin, which didn’t take itself too seriously and attracted millions of Shibes.
Dogecoin may now be able to reverse engineer an objective, potentially as a form of digital payment. But this is probably a one-off situation, and that doesn’t make cryptocurrencies with no real utility into good investments. Many Dogecoin spin-offs have published white papers, but few are doing anything.
The bottom line
Doge may be here to stay, but it doesn’t make it a good idea to speculate on a piece with Doge or Shiba Inu in the name.
There are so many amazing cryptocurrency projects. Not all of them will be successful – and it is unclear how this emerging industry will develop. But personally, I prefer to invest in a project that has the potential to transform the world we live in rather than a project that makes me laugh.
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Emma Newbery has no position in the mentioned cryptocurrencies.
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