After landing on AMC, could this whale be Shiba Inu’s next merchant?
We did a lot of S&P 500The index’s historic rebound from the pandemic low set in March 2020. The index’s gain of just over 100% represents its biggest rally since a bearish market low on record.
However, that triple-digit payout wouldn’t even raise an eyebrow for people holding a coin. Shiba inu (CRYPTO: SHIB) since its debut on August 1, 2020. In just over 15 months, SHIB tokens have gained nearly 10,000,000%. Essentially, a $ 10 investment on Day 1 would be worth around $ 1 million today.
AMC Entertainment lifts the curtain of darkness for Shiba Inu
There are a lot of reasons why Shiba Inu has been able to deliver life-changing gains in a relatively short period of time. In no particular order:
- A growing number of cryptocurrency exchanges list SHIB for trading.
- The fear of missing out (FOMO) set in, especially after seeing Bitcoin (CRYPTO: BTC) climb 8,000,000,000% in 11 years.
- The launch of the decentralized exchange ShibaSwap in July increased liquidity and encouraged staking, which should encourage â€œhodlersâ€ to hold onto their SHIB longer.
- Elon Musk helped push Shiba Inu higher with tweets on the theme of the Japanese breed Shiba Inu or his recently adopted dog Shiba Inu, which he named Floki.
But perhaps the biggest news of the last month is that the play Shiba Inu landed its first major dealer, a movie chain. AMC Entertainment (NYSE: AMC).
On October 29, AMC CEO Adam Aron released a poll on Twitter who asked users if his company should accept SHIB as an online payment method. Almost 88% of the 153,100 votes cast showed some support for activating SHIB tokens for payment. Aron followed this up on AMC’s third quarter conference call, noting that the company was exploring ways to accept the Shiba Inu coin. AMC now plans to accept Shiba Inu for payment within 60 to 120 days, per Aron.
Once launched, Shiba Inu will join Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Dogecoin (CRYPTO: DOGE), the main rival of SHIB, as accepted forms of digital currency for AMC.
The next big dealer to accept the Shiba Inu coin could be a doozy
AMC is a large cap company with a global brand. But if rumors about another venture come to fruition, Shiba Inu has a chance to land nothing less than a whale as the next merchant.
In early November, the rumor mill started to run at full speed when it was reported and confirmed that the name “SHIBA” had been found in the payment processing code for Tesla Motors‘ (NASDAQ: TSLA) website. It was located directly under Bitcoin in the code.
For what it’s worth, it could mean a lot. For example, Tesla CEO Elon Musk owns Dogecoin in his crypto wallet. The two developers of Dogecoin were inspired by a Shiba Inu meme. Musk also previously tweeted that he was working with current Dogecoin developers to improve the network. Thus, “SHIBA” could be a reference to Dogecoin and not to Shiba Inu. In fact, Shiba Inu is known as the “Dogecoin Killer”, with both sides seemingly at the ends.
Conversely, it could be as simple as Shiba Inu being programmed for future acceptance.
At this point, neither Tesla Motors nor Elon Musk have confirmed what the reference “SHIBA” in the payment source code refers to.
However, Musk has a penchant for cryptocurrencies. As some people may recall, Tesla bought $ 1.5 billion in Bitcoin for its balance sheet in February, with Musk also announcing that his company would accept payment for its vehicles in Bitcoin. With the richest person in the world holding Bitcoin, Ethereum, and Dogecoin in his wallet, he has demonstrated his willingness to explore the use of crypto in the real world.
Before you get too excited …
But before you start betting the world’s hottest cryptocurrency farm, there are a few things to keep in mind.
Firstly, Elon Musk does not own Shiba Inu and has, based on his ownership and tweet history, placed his support behind Dogecoin. Even with the rapidly growing Shiba Inu community approaching 1 million hodlers, it would be much more likely to reference SHIBA in the payment processing code either for Dogecoin or just a placeholder for the name of the project. The odds of Tesla accepting SHIB for payment at any time seem low.
Second, and arguably far more important, the actual use case for SHIB is virtually nonexistent. The Cryptwerk online business directory notes that only 137 merchants around the world currently accept SHIB for payment. That’s a ridiculously low number for a digital currency that hovers between # 9 and # 11, in terms of the largest crypto by market value.
To build on this, even hooking AMC Entertainment isn’t the win you might think. The potentially high transaction fees associated with paying with SHIB, along with the tax implications of using crypto to pay for goods or services, make it very unlikely that Shiba Inu will move much, if at all, for AMC. .
And third, cryptocurrencies that offer life-changing gains in a very short period of time have a notoriously poor track record once they peak. A number of popular payout coins that generated five- and six-figure percentage payouts ultimately returned between 93% and 99% of their value after their peak. Chances are, with no competitive advantage and minimal real-world utility, the same fate awaits Shiba Inu once his social media buzz wears off.
This article represents the opinion of the author, who may disagree with the â€œofficialâ€ recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.