Edward Snowden Warns Against Investing in Shiba Inu Token

Edward Snowden, a former National Security Agency (NSA) consultant, thinks it is a bad idea to put hard-earned money into Shiba Inu.

Shiba Inu, a cryptocurrency meme with low practical value, has sparked a lot of buzz in the market and has attracted the attention of many retail investors.

Social experiment on humans

The creators of Shiba Inu confirm that in creating the token, they embarked on a social experiment to understand how communities are built and how memetic engineering works on a group of risk-averse traders. It was not originally conceived as a financial investment. Meanwhile, Shiba Inu fans argue that smart contracts, non-fungible token (NFT) functionality and the ability to mine liquidity are useful and practical.

On the other hand, critics argue that the coin's rally is highly volatile, and the inflated value points to the big fool theory at work. As  defined by Wikipedia, the Bigger Fool theory suggests that the value of an asset rises until an even bigger fool can be found willing to buy an overvalued asset. Within the framework of this theory, investors buy an overvalued asset without thinking about its real value, in the hope of reselling it to someone else, "an even bigger fool."

Shiba Inu Dizzying Rally

Snowden, meanwhile, is worried about people who make huge financial sacrifices on the altar of the Shiba Inu memorial coin, such as mortgaging farms or housing. The fact that people buy "trash" does not particularly bother him.

People can buy garbage, if they want to, I don't care. But when they emotionally lay down farms to buy a meme token, not fully understanding what they are doing, this is a problem,” he wrote in response to the militant army of Shiba Inu fans.

Over the month, the Shiba Inu token has risen in price by 829% and entered the  top ten cryptocurrencies in terms of capitalization. At the time of this writing, one token costs $0.00007120.

Shiba Inu story

The Shiba Inu token was created by an anonym known as Ryoshi in August 2020. In the technical documentation of the project, he called Shiba Inu "an experiment to create spontaneous decentralized communities." Shiba Inu - this token format ERC20  with a maximum of one quadrillion issue.

The scam on the part of the creator is the main risk factor when investing in this kind of tokens. The project can collapse at any moment, leaving investors in a broken trough.

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