Shiba Inu coin had a massive spike this week thanks to some new social media attention.
Tesla CEO Elon Musk tweeted a picture of his dog, a Shiba Inu breed named Floki. That dog is the namesake of the cryptocurrency token, Shiba Inu coin.
So, in response, the hashtag #SHIB began to trend on social media.
- “On Twitter, many noted that the coin deleted a zero from its decimal. Even so, the coin is still worth less than a penny despite the jump, which took it to 0.00001090 cents,” according to Business Insider.
Shiba Inu coin has had some recent success that’s worth noting. Per Benzinga, the hashtag #SHIB was trending multiple times within the last week, reaching the top 10 spots on a few occasions, too.
- The increased social media attention led to a jump in the Shiba Inu coin price, too, Benzinga reports.
In September, the Shiba Inu coin soared to new levels — spiking by 35% — after it was added to the Coinbase app, according to Mint, which monitors financial and cryptocurrency news.
- Coinbase, a cryptocurrency trading app, allowed people to start trading and investing in the cryptocurrency in September, giving people who might have had access to the coin a chance to invest, per the Deseret News.
The problem, though, with a spike of Shiba Inu coin is that a number of people will invest all at once. When they do so, others will sell, which lowers the value.
- “This kind of behavior is the exact reason why SHIB is an untrustworthy asset because it is literally treated like a pump and dump asset. The instances observed ... are similar to what we saw at the beginning of the July rally,” according to AMB Crypto.
Still, cryptocurrencies are always in flux, so they can be a dangerous investment.
- “Memecoins are highly volatile cryptocurrencies that are known to witnesses sharp movements based on news events,” according to Mint.
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