A few years into our most crypto-friendly era, everybody has signed off on Dogecoin (DOGE) as an established store of value.
The market didn’t even blink when copycats designed a Shiba Inu token modeled after DOGE’s success.
Now we seem to have reached the limit of Shiba Inu currencies with Shiba Tron (SHIBT), but only perhaps because of specific code glitches that have raised the concerns of investors.
Jet Encila at NewsBTC reveals that SHIBT currently has a market cap of $53 million, with 5000 investors and over 10,000 transactions completed.
In light of that, Encila is reporting on comments by security firm Peckshield suggesting that SHIBT is not actually widely tradable.
“This token, named after the surprising hit of 2021, Shiba Inu, has almost no value,” Encila writes. “Fortunately, the bogus token was spotted early on, preventing Shiba Tron from duping other users. … A few days ago, the SHIBT coin soared by more than 1,000%, capturing investors’ interest. PeckShield, on the other hand, has issued a warning to cryptocurrency aficionados regarding SHIBT. The contract, according to the blockchain security firm, has a piece of code that restricts token sales to whitelisted individuals.”
Now people are talking about hard forks in order to wrest control of the cryptocurrency and open the gates to some of the investors who might otherwise have stuck assets.
In general, it’s good practice to avoid platforms that put restrictions on buying and selling.
“PeckShield recommends avoiding tokens or coins that restrict users’ capacity to sell, transfer, or conduct transactions using their own cash,” Encila adds.
Analysts cite a part of a PeckShield tweet evaluating the build of the token:
“The token has restrictions on selling (meaning the price is manipulated and investors may be trapped in a honeypot)”
This is a reminder to do your due diligence on any coin or token you want to acquire. There is hardly any limit to the endless minting of defi assets, and the spawning of altcoins, but sometimes it’s what’s behind them that counts. Remember the altcoin graveyard?
