Motley consulting firm SHIB faces many of its own challenges, explains the statement. However, they have made predictions about what will happen in 2023. cryptocoin.comIn this article, we have shared the company’s analysis with you.
Consulting firm’s target is SHIB
The company stated that Shiba is a quintessential meme coin. But they said that this reputation is not because of its usefulness as a currency. They said the reason was speculation that led SHIB to a historic return of 43.8 million% in 2021. They added that investors with perfect timing can become millionaires for the price of a cup of coffee.
But in 2022, the opposite happened, and the token has dropped 76% to date. However, this story is not entirely unique to the Shiba Inu. The reason is that the entire cryptocurrency industry is currently in a deep slump. It also has a total value of $810 billion, well below the all-time high of $2.9 trillion set last year.
Shiba Inu may suffer from broad crypto sentiment
The sentiment is overwhelmingly negative at the moment, according to the company. Prosecutors in the US began to bring charges against some of FTX’s leadership team, which went bankrupt in November.
Unfortunately, when things go wrong in the cryptocurrency world, investors often learn the hard way that there is no insurance or remedy to help them recover their losses. FTX is the latest in a series of disasters for the industry in 2022. It follows the de-pegging of the TerraUSD stablecoin, which destroyed an estimated $60 billion in value, and the collapse of Three Arrows Capital, a hedge fund. With investors’ confidence that the coin will sink, it makes sense that tokens like the Shiba Inu remain among the hardest hit due to their speculative nature. If investors don’t think the Shiba Inu will go higher, then it probably won’t.
What awaits Shiba in 2023?
The Shiba Inu has only one problem – a massive supply of tokens. There are currently over 589 trillion tokens in circulation. That’s why its price per token lags behind the decimal places trading at $0.000008. The community is trying to ‘burn’ some of that supply. This means removing the tokens from circulation permanently as it will (theoretically) increase its price proportionally. This is done in a number of ways, including sending a token to a dead wallet, purchasing coffee from Shiba Coffee Co., publishing a specific music playlist, and even community involvement in the upcoming metaverse project.
However, there is a problem. Only 10.9 million tokens have been burned in the last 24 hours. If this rate continues through 2023, only 4 billion will be removed from circulation by the end of the year. In other words, only 0.000007% of the extraordinary supply, which will do nothing for the price of the Shiba Inu. Combined with the fact that investors’ sentiment towards the cryptocurrency industry will not improve much in the new year, the risk for SHIB tokens is on the downside.