This VC sees similarities between Shiba Inu and Rivian
In a Friday tweet, Geoff Lewis, founder of New York-based venture capital firm Bedrock Capital, pointed to similarities between joke cryptocurrency Shiba Inu and electric vehicle firm Rivian.
Rideshare company Lyft’s top backer says its success is symptomatic of a “reverse economy” that favors “abstract narratives” over reality.
A $100 billion company that is yet to make money
On Nov. 10, Rivian had one of the biggest initial public offerings in history, raking in $12 billion.
Its shares hit a new high of $ 125 earlier today, which translates to a valuation of around $ 105 billion.
The blockbuster rubbed Tesla CEO Elon Musk the wrong way. Wednesday it tweeted that the electric vehicle maker had yet to pass the “real test” of achieving high production and breakeven cash flow.
Rivian, which was brought to prominence by Amazon founder Jeff Bezos, is closing in on the market capitalization of General Motors, but here’s the catch: the electric truck maker has only delivered an infinitesimal 156 cars.
However, investors are playing the long game by piling money in the power companies they believe will dominate ten years from now. In August, President Joe Biden announced his goal to make sure that electric cars account for 50% of all sales in 2030.
In October, it reported zero revenue and a loss of $ 994 million in the first six months of 2021.
A $50 billion Dogecoin copy
On Oct. 28, Shiba Inu reached a market cap of $51 billion despite being a year-old copy of another dog-themed Bitcoin parody with very few use cases.
Last month, whistleblower Edward Snowden warned his supporters against throwing their “hard earned money” at SHIB.
Lewis compared Shiba Inu to Pets.com, a pet food supplier that ended up crashing and burning in 2000 and became synonymous with the dot-com bubble.
Still, proponents believe that Shiba Inu could potentially grow into a large ecosystem with a multitude of products and integrate more users after being accepted by the general public. Earlier this week, AMC CEO Adam Aron said that the cinema giant had started working on enabling support for the meme coin.
