SHIB coin: Why Shiba Inu coin is rising again

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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