If SHIB is a shitcoin, why are the exchanges still listing it?

The era of meme tokens is far from over. While there are many coins that “follow” DOGE’s success, none has performed as remarkable as Shiba Inu (SHIB). Ranked 48th on CoinMarketCap, this meme token already has a market capitalization of several billion dollars. However, another measure of its recent success is its listing on many major exchanges.

SHIB Price Chart | Source: Tradingview

The newest among them is Binance.US following yesterday’s announcement of the SHIB listing. Although it has been delayed for a while for unknown reasons, it is now possible to trade SHIB on the platform. The news got hot after Coinbase Pro was listed last week. In fact, this listing resulted in a price increase of 30%.

While the recent listing event had almost no impact on price, adoption by these platforms isn’t surprising. Since hitting an all-time low in November, SHIB’s valuation has risen 11,967,223%, meaning huge returns for investors. Despite being a highly speculative coin, many still consider it a lucrative investment.

In fact, in May, SHIB was inducted into Binance’s Innovation Zone, the Innovation Zone designed specifically for high-risk traders. Shortly thereafter, the competing exchange FTX listed the altcoin with its highest market capitalization of $ 13.83 billion. However, since then the price has fallen 80% and the movement is also slowing down.

The very volatile and speculative nature of SHIB could make it a point of contention for the SEC. Especially since US exchanges such as Binance.US and Coinbase are in danger.

While the SHIB’s fate has yet to be officially decided, it could be cause for concern for the exchanges listing it.

Additionally, while DOGE has backers like Mark Cuban, Elon Musk, and Vitalik Buterin, as well as a platform that has been revived by many developers, none of them seem to favor clones of the company.

In addition, over 80% of all SHIBs are held in whale accounts, although the institution was more involved until recently through the conversion of ETH holdings. The WhaleStats Twitter account has report on September 14th:

“An ETH whale has just bought 386,892,649,303 SHIB (US $ 2,526,408).”

This makes the SHIB an even riskier investment as it collapses easily because it can be hit by a “giant” whale at any time.

However, none of the above weaknesses appear to be a factor holding back the top exchanges, as SHIB was recently listed on Huobi and Poloniex along with Coinbase Pro and Binance.US. In addition, Robinhood is also reportedly buying the 48th largest digital asset in bulk.

Although the SHIB community reacted quite positively to this news, the crypto community as a whole sees a different opinion. In fact, when the startup delay was first announced, it became a user comment:

“Please postpone this rug-pull project permanently. I thought Binance.US was a reputable platform until the news. “

At the same time, the others were also vehement protest Exchanges like Binance.US list a “Shitcoin”.

“I was hoping Binance US wouldn’t list the shit coins, but maybe that shouldn’t surprise me.”

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