In the past 72 hours, the cutely named cryptocurrency, Shiba Inu Coin, an offshoot of the DOGE coin, overtook Bitcoin & Ethereum as the hottest coin in the market. It’s risen at times to nearly 300 percent of it’s original value. Here’s some possible reasons why:
Underbanked see new road: Many people find it more profitable to place a bit of their savings on a highly speculative coin as opposed to sitting idle on a bank that may or may not charge them fees for placing so little on their checking account. The underbanked, a category of people with scarce banking resources due to deposit minimums and withdrawal fees, are now migrating to cryptocurrency for both day to day expenditures and to leverage against inflation. Many individuals have rainy day funds deposited in some kind of cryptocurrency.
New surge: Shiba Coin ($SHIB) is permitting people who lost out on the euphoria of the DOGE surge in value to gain on this new value drive. Many are stocking up on the currency which may or may not become traded on Robinhood as well, eventually. That’s a rumor circulating on various Reddit and Twitter forums.
Cryptocurrency transfers replacing wire transfers: Emerging markets, like those in El Salvador, or middle income countries, like India, now see the emergence of Cryptocurrency transfers replacing wire transfers. Wallet to wallet transfers offer a cheaper and quicker way for families to transfer funds between themselves. Recently, Moneygram opted to settle cross-border wiretransfers with the US Dollar Coin. Customers can opt to receive a transfer in the stablecoin ‘USDC’ or cash out. Either way, the customer is now tapped into the Coinbase supported digital coin pegged to the value of the US dollar irrespective of what currency is used to perform the transfer. Many speculate that since families may be going around wire services, groups like Western Union and Moneygram now want in on the action. UC Davis researcher, Alfonso Aranda explains: “Money Gram and Western Union are feeling the heat of small nations making bitcoin legal tender or considering it”. This has been crucial to some countries, like El Salvaldor, that now supports small wealth transfers within families through a government app. Remittances are likely the next big wave of funds that may end up funneled through a blockchain and cryptocurrency.