The cryptocurrency market is experiencing a new wave of speculative frenzy.
As Dogecoin (DOGE) mania begins to fade, Shiba Inu (SHIB) has taken center stage. Overnight, countless altcoins have emerged, boasting astronomical gains—50x for LOWB, 190x for PIG, and an astonishing 1000x for CRPS.
This resurgence of "get-rich-quick" myths has brought back chaotic market conditions reminiscent of past crypto bubbles.
The Shiba Inu Phenomenon
On May 10 at 7:15 PM UTC, Binance suddenly suspended all withdrawal services—typically a sign of potential security issues. After 30 minutes, operations resumed, with the exchange citing traffic overload as the cause.
The disruption coincided with SHIB's listing on Binance at 7:00 PM that evening. The overwhelming user demand for this altcoin caused technical failures across the platform, highlighting its explosive popularity.
According to its whitepaper, SHIB was inspired by the 2021 retail investor uprising against Wall Street. The token's quirky premise:
- Total supply: 1000 trillion SHIB
- 50% pre-sent to Ethereum founder Vitalik Buterin's wallet
- For context: Total USD circulation is $2.15 trillion (FRED 2021 data)
Founder Ryoshi describes SHIB's team as "never having worked together before," united only by their love of Shiba dogs. The project gained viral traction when Elon Musk tweeted "I'm looking for a Shiba," fueling retail investor euphoria.
Market Performance and Investor Behavior
CoinMarketCap data shows SHIB's price skyrocketed post-May 7:
- 3-day growth: 10,000%+
- Peak market cap: $10 billion (Top 20 cryptocurrency)
- 24-hour trading volume: $8 billion
Interview with investor "Mr. Pang":
- Entered after Musk's SHIB tweet on May 8
- Initial investment grew 400% within hours
- Cashed out principal after 3x gains, letting profits ride
However, by May 11:
- 8 AM: 117.62% 24-hour gain
- 4 PM: Gains fell to 33.07%
- 10 PM: Just 3% remaining
The Altcoin Carousel Continues
As SHIB cooled, CSPR emerged:
- Launched at $0.015 on OKX exchange May 11
- Peaked at $36 (2400x gain)
- Settled at $1.24 (-79.20% from peak)
Other notable performers:
- PIG: 190x surge (riding animal-naming trend)
- LOWB: 58x growth ("for losers" meme appeal)
These tokens share concerning traits:
- Zero intrinsic value
- Rely on ultra-low entry prices and meme culture
- Questionable security/compliance standards
Historical Parallels: The 2017 ICO Bubble
The current altcoin mania mirrors 2017's ICO frenzy, when:
- Hundreds of ERC-20 tokens promised blockchain innovation
- Many were outright pump-and-dump schemes
- China's September 4 ban caused 90%+ crashes
Key Differences This Cycle:
- Institutional involvement in early bull market
- Macroeconomic conditions (pandemic, monetary policy)
- More mature (but still speculative) crypto infrastructure
Expert Perspective
Distributed Technologies CEO Da Hongfei notes:
- Current altcoin surge reflects late-cycle speculation
- Driven by excess liquidity and crypto mainstreaming
- "Unsustainable like small-cap stock surges in traditional markets"
👉 Discover how major exchanges handle volatile altcoins
FAQ Section
Q: Are altcoins like SHIB safe investments?
A: Extremely high-risk. Most lack fundamental value and rely purely on speculation.
Q: Why do exchanges list these volatile tokens?
A: Trading volume generates fee revenue, though some platforms now implement stricter listing criteria.
Q: How is this different from 2017's ICO crash?
A: While similar in speculative excess, today's market has more institutional participation and regulatory oversight.
Q: Should beginners invest in meme coins?
A: Not recommended—treat them as high-risk casino-like bets rather than investments.
Q: What's driving this altcoin surge?
A: Combination of retail FOMO, celebrity endorsements, and search for "the next DOGE."
👉 Learn to identify red flags in speculative crypto projects
Conclusion
The altcoin resurgence demonstrates crypto's cyclical nature. While some traders profit from volatility, history suggests most speculative tokens eventually collapse. Investors should:
- Never allocate more than they can afford to lose
- Understand the difference between memes and substantive projects
- Prepare for extreme price swings
The market may be entering its "greater fool theory" phase—where prices rely on new buyers rather than intrinsic value. As blockchain veteran Da Hongfei warns: "This is the speculative froth before potential contraction."