A closely followed bitcoin analyst has revealed he invested in the meme-inspired cryptocurrency Shiba Inu ($SHIB), despite rival memecoins Dogecoin ($DOGE) seeing a significant rise after Tesla started accepting it as a payment method for merchandise.
The pseudonymous bitcoin analyst Pentoshi, who has over 460,000 followers on the microblogging platform Twitter, revealed he “bought some SHIB” believes that its risk/reward ratio, which marks the prospective reward an investor can earn for the risk of the investment, justifies the move.
Pentoshi noted he will be watching the cryptocurrency’s price to see “how it developers as we get closer to February” and that he prefers it over its “close relative” for now. That relative, DOGE, pumped after Tesla enabled payments in it for merchandise on its website.
As CryptoGlobe reported, Tesla’s DOGE payments feature went live with the company allowing specific products such as its “cyberwhistle,” its “Giga Texas” belt buckle” and its “cyberquad” four-wheeler for kids to be sold for DOGE. These items are all priced in DOGE, ranging from 12,020 coins for the four-wheeler to 300 DOGE for the cyberwhistle.
On Tesla’s Dogecoin support page, the firm notes it only accepts DOGE as a payment method and that it “cannot receive or detect any other digital assets.” It asks users to ensure they are using DOGE when purchasing as sending “any other digital assets may result in the assets being lost or destroyed.”
Notably, Pentoshi chose to invest in Shiba Inu at a time in which rumors claiming it will be listed on Robinhood (NASDAQ:HOOD) in February have helped its price move up. Shortly after the Robinhood listing rumors started spreading, an Ethereum whale bought 58.9 billion SHIB. Shiba Inu has lost around 53% of its value ever since it hit an all-time high of around $0.00008 in mid-October 2021.
Dogecoin, on the other hand, hit an all-time high near $0.70 in May of last year and has since lost around 72% of its value as it’s currently trading at around $0.19, according to CryptoCompare data. The meme-inspired cryptocurrency is up 11% thanks to Tesla’s endorsement.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Pixabay