Few assets have demonstrated more millionaire-maker potential than Shiba Inu (CRYPTO: SHIB) , a controversial cryptocurrency that soared by 45,278,000% in 2021. But this unprecedented rally was based on hype instead of sustainable fundamentals, and the token gave back most of its gains by mid-2022.

Now, Shiba Inu is rising once again. Let's discuss its pros and cons to decide if it has become a good long-term buy.

A more speculative way to bet on crypto

Meme coins , which started in 2013 with the launch of Dogecoin , are less serious cryptocurrencies based on internet jokes. Unlike mainstream cryptocurrencies, they aren't designed for real-world utility or to improve upon the shortcomings of other networks. Shiba Inu was created in 2020 as an alternative to Dogecoin , and it copies some of the older cryptocurrency's branding, such as the Shiba Inu hunting dog.

Over the long term, meme coins tend to be poor investments because they are often controlled by anonymous developers with little accountability. Their typically small size also makes them vulnerable to exit scams (also known as rug pulls), where the majority holders dump their stakes for a profit and abandon the project. That said, there could be a silver lining for some of these controversial assets.

Can meme coins "graduate?"

The truth is that no cryptocurrency boasts significant real-world utility. According to Statista, only 0.2% of online transactions are made using digital assets.

And while programable blockchains like Ethereum have vast ecosystems of decentralized applications (dApps), most haven't left the speculative and experimental stage. To that point, Shiba Inu itself is a token programmed on the Ethereum network.

In general, cryptocurrencies (meme coins or otherwise) get their value based on what other people are willing to pay for them. And as meme coins like Shiba Inu gain more mainstream acceptance over time, they could eventually become viable alternatives to the big names.

Is the Trump administration a catalyst for growth?

Shiba Inu prices have risen around 92% over the last 12 months, and some of this might be related to political optimism. On the campaign trail, President-elect Donald Trump struck a conciliatory tone toward the cryptocurrency industry, suggesting he might create a Bitcoin strategic reserve and potentially ease regulations on digital assets.

If true, this would mark a significant departure from the Biden administration, which saw the Securities and Exchange Commission (SEC) file lawsuits against major industry players like Coinbase over alleged violations of securities law .