Crucial Pump and Dump Warning Issued to Shiba Inu Community
u.today 04 September 2024 16:34, UTC In her characteristic manner, Lucie, the marketing lead of the Shiba Inu ecosystem, has issued a crucial message to cryptocurrency investors and members looking to invest. In a post on X, Lucie highlighted the growing trend in the crypto ecosystem, which has led to an oversaturation of the space with nonviable projects.
Upsurge in unsustainable crypto projects
According to Lucie, many of these new projects need more genuine supporters. Even when present, the support base needs to be bigger to guarantee sustainability. Therefore, when a new chain with only a few hundred supporters enters the market, the resultant effect becomes “pump-and-dump.”
The Shiba Inu marketing lead maintains that the market has a way of winnowing pretenders from the scene. “Chains with only a few hundred supporters can’t make it, and tokens driven by pump-and-dump hype won’t succeed. Eventually, the market will separate quality from trash,” she stated.
There are too many chains and tokens at this point, but no new retailers.
It makes zero sense. Chains with only a few hundred supporters can’t make it, and tokens driven by pump-and-dump hype won’t succeed.
Eventually, the market will separate quality from trash.
DYOR
— (@LucieSHIB) September 4, 2024
Lucie emphasized the upsurge in the number of chains, that is, blockchain networks and tokens (cryptocurrencies) on the market. However, this proliferation has yet to lead to a corresponding increase in utility or adoption by retailers or real-world businesses.
The marketing lead cautioned investors to carefully evaluate or research a project before investing their funds and time to prevent losses occasioned by pump-and-dump. Usually, such projects fade away when a market correction occurs.
Crypto project’s survival depends on utility
Although Lucie mentioned no specific crypto project, her message to the community aligns with an earlier one reported by U.Today about crypto survival. In that update, Lucie stated that not all cryptocurrencies will remain solvent by 2026, as thousands of projects will battle for survival. Specifically, only those with real-world utility will make it.
At the time of writing, general market sentiment on Shiba Inu was 79% bullish and 21% bearish despite its low price performance. Shiba was changing hands at $0.00001307, down by 3.87%, per data from CoinMarketCap.
