Shiba Inu and Dogecoin: main differences and why they are called "meme coins"

shiba inus, then, is a derivative of Dogecoinwhich itself was born as a satire of the cryptocurrency frenzy in 2013, and has almost no practical uses.

Shiba Inu

What are meme coins?

The “meme coins” not only compete in grace, but also within the market: after Elon Musk announced the purchase of Twitter last week, Doge increased his shares by 30 percent, while Shiba rose only 5 points.

In this context, a great influence can be seen from the popularity that memes can generate within cryptocurrency users. Although these digital assets are not usually meant to be taken seriouslythey can gain momentum when community members buy the newest one to take part in the prank.

Once it becomes popular and increases in value, retail investors sometimes jump on the joke and raise the coin even higher. A great example is the Dogecoin fork called Floki Inu, a crypto based on Elon Musk’s dogprobably one of the most famous characters today.

Musk said that he personally owns three cryptocurrencies: BitcoinEthereum and Dogecoin. Every time you tweet about the Doge, the price tends to go up. When Time magazine chose Musk as the person of the year 2021, the value also climbed.

https://twitter.com/elonmusk/status/1399985389725753346

Risks of investing in memes

In this context in which the value of the coin depends on the best jokes or which celebrities mention it, investing in “meme coins” implies great volatility. While this means that the value of a certain coin could rise dramatically, as happened with Dogecoin, could also collapse very quickly if the community loses interest and moves on.

But the world of memes is not closed only in these two currencies. There are also competitors that use puppies as an image: Crypto Inu, Volt Inu V2, 3X Long Dogecoin Token, AmazinDoge, and Ryoshi Token.

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