A LUCKY Shiba Inu trader bought £2,500 in crypto last August and it’s now worth a whopping £1billion.
The mystery crypto billionaire has bought the dog-themed coins on more than 40 occasions in the last 14 months – with their total assets now topping a huge £4.3billion.
According to Etherscan, the unknown trader made nine purchases of Shiba – popularly known as Dogecoin’s little brother – in August 2020, spending a total of £2,500.
But the price of the meme coin has rocketed more than 94,278,239.8 per cent in the last year.
Despite this person’s success, it’s vital to keep in mind that cryptocurrencies are extremely volatile and can be incredibly risky to invest in.
Earlier this week, for example, the price of Bitcoin crashed, wiping hundreds of billions of dollars from global cryptocurrency markets in a matter of minutes.
One major concern with crypto is that there is no guarantee you’ll be able to convert your assets back into cash when you need to.
Doing so depends on supply and demand in the market, and fees and charges for buying and selling are also often higher than with regulated investment products.
There is also no guarantee that you can convert cryptoassests back into cash, as it Cryptocurrency firms aren’t regulated in the way that other financial firms are. This means that you won’t have any protection if things go wrong.
The mystery Shiba trader has become a crypto billionaire just from their August purchases after the value of their Shiba tokens surged to £1billion, Coin Telegraph reports.
Shiba has been on an incredible run lately – and some are wondering how high it will go by the end of 2021.
The coin has hit multiple new record highs in recent days – trading as high as $0.00008685 on Wednesday.
In the past month, Shiba has looked unstoppable – surging more than 1,000 per cent.
The value of the coin soared on the back of a tweet by Elon Musk, and trading volumes shot up too.
The crypto has gained popularity in recent months, especially since it was listed on leading currency site Coinbase in June.
And Shiba has now surpassed the popular Dogecoin after its massive growth.
The coin is now ranked ninth, while Dogecoin is ranked eleventh.
Although the Shiba tokens feature the same dog of Dogecoin, sometimes Shiba is referred to as the “Dogecoin killer”.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, previously told The Sun: “The Shiba Inu coin appears to have been created just to give Dogecoin a run for its money.
“It features the same dog which became a meme, and aims to replicate Dogecoin’s success of turning a joke into a money making machine.”
A meme coin is typically based on a social media or internet-based joke.
But Adam Garcia, founder of investment information website The Stock Dork, said investors won’t abandon Shiba anytime soon.
Crypto website Wallet Investor expects the coin to be valued at just $0.000053 in a year – down from its current trading levels.
Coin Price Forecast, on the other hand, predicts Shiba will be valued at $0.00015031 by the end of 2021 and $0.00018090 by the middle of next year.
However, Shiba launched trading just this year, and newer cryptocurrencies are riskier than those that have been around for longer, such as Bitcoin.
It’s difficult to predict how Shiba’s price will change in the future due to a wide number of factors affecting it.
This includes regulatory crackdowns around the world, and comments by high-profile individuals such as Musk, and other developments.
The value of an investment typically falls if many investors sell off their assets around the same time.
Cryptocurrency markets fell in recent months after a series of worldwide crackdowns on the currencies.
But there has been some positive news coming out of the US, with country vowing not to ban it, unlike China.
What are the risks of investing in crypto?
Investing in any cryptocurrency is risky – here we round up what you need to know.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.