It’s been an amazing week for shiba inu, the meme coin that rallied 150% and surpassed and another older cryptocurrency with a cute puppy mascot.
But while shiba inu and dogecoin started out as jokes, they are now among the top 10 digital assets by market valuation, according to CoinMarketCap. And that may be a sign of what’s to come as cryptocurrencies continue to grow.
“They are part of the evolution of digital finance in their own way,” Bitcoin IRA co-founder Chris Kline told Insider.
He recognized that some parts might not stand the test of time and wondered how many parts even the industry can handle.
But whoever survives, Kline is convinced that even tokens, in general, are here to stay.
“That’s my big thing, is that they are obviously part of the crypto revolution. They are here. They are part of this concept,” he said.
The examples of shiba inu and dogecoin illustrate the main characteristics of the coins themselves.
Shiba inu was founded in August 2020 with the aim of moving away from “rigid social structures and traditional mindsets”. Dogecoin was founded in December 2013 in the hope of becoming the “fun and friendly internet currency”.
What these meme pieces have in common, among other things, is the community behind them, Kline said. And many crypto investors can be categorized into two categories.
First, there are those who want to dismantle traditional financial institutions. The coronavirus pandemic has exacerbated the growing disparity between the rich and the poor in the country. A decade earlier, the Occupy Wall Street movement emerged to protest economic inequality.
Kline draws a line between the two events. “Crypto has come to be right around this,” he said, referring to the creation of Bitcoin in October 2008.
The second category of crypto-investors is those who want to see money evolve. These investors bemoan the complex maze of instructions and restrictions that banks place on them, unlike the fast, anonymous, and cheap 24/7 transactions that cryptos are known for, Kline said.
He is not surprised at the resistance of regulators and traditionalists. Every disruption has met with opposition, but at the end of the day, “crypto is all about consensus,” he added.
For now, however, Kline said investors should expect more volatility.
“The market is still at a very speculative stage at this point,” he told Insider. “It’s going to come down to adoption and utility.”