Shiba Inu's 43 million percent gain relied on two tricks: a sub-penny price that looks cheap, and 589 trillion coins in circulation. Neither matters for returns, but both created the illusion that the coin was undervalued.
Shiba Inu, which is one of the most popular meme coins on the market. And the crazy part about it is I actually know somebody that knows the creator, and they said that there's kind of like 2 elements that help Shiba Inu go really, really viral and go up in price a lot. He said these 2 points. Number one, on the website they put the price specifically really low, like less than a penny. So for new people, when they think of less than a penny, they think that's cheap, but that's not cheap in the context of investing, right? Cheap only means a price that's low that you could sell for higher. So it doesn't matter if you're buying 100 and 7K BTC or a coin that's a penny, all you care about is the percentage increase because you can get a fraction of a Bitcoin. If that increases by 10% and you have another one that you have like a million coins and that increases by 10%, in both cases, regardless of how much of the coins you have, you only made 10%, right? So in the case of Shiba Inu, the first element that they finessed is the perception of price. The second thing they finesse is the circulating supply. So as you can see right here, the circulating supply is literally like 589 trillion. Long story short, they did like some type of finesse in the circulating supply on purpose to make that number really, really high because they know the formula of these websites is what? Circulating supply times price. To new investors, it's really cheap, and to the website, it's really high on the market cap website. So as an investor, as a trader, your goal is to find really cheap coins, but not in the context of dollar amount. You're trying to find cheap coins that are really small that will increase in price really, really fast.
