Bitcoin just pass $54k, as Shiba Inu Coin continue to rise after Elon Musk tweet. Musk bought a pet Shiba Inu in September, and called it Floki. On Monday he tweeted a picture of the puppy with the caption “Floki Frunkpuppy”.
The tweet did not even have anything to do with Shiba Inu coin, but it was enough to send his supporters flocking to buy the coin, therefore boosting its value.
The SHIB token, centered around a breed of Japanese hunting dogs, is up another 69% in the past 24 hours, according to CoinGecko pricing, putting its market value above $10 billion.
The gains have come amid a broad rally in major digital currencies, underpinned by favorable seasonal factors, positive technical chart signals and a lack of interference from the Federal Reserve. But SHIB’s 216% surge in the past week has well overshadowed the performance of Bitcoin and Ether, the two biggest tokens, which are both up more than 20% in this period.
It goes without saying that any currency that can be so heavily influenced by someone tweeting a picture of their dog is far from a stable investment. While such currencies can make you money, anyone investing should be prepared to lose everything they put in.
Musk has often shown an ability to influence the cryptocurrency market – even coins as large as Bitcoin.
He has previously been a vocal supporter of Dogecoin, on which Shiba Inu coin is heavily based, though it has never been clear how much of that support is a joke.
On its website, Shiba Token calls itself “an experiment in decentralised spontaneous community building”.
It is listed on its own decentralised exchange called ShibaSwap.
According to Binance, the total supply of Shiba Tokens is one quadrillion (1,000,000,000,000,000) and the current circulating supply is 100 per cent.
The Shiba Token website says 50 per cent of the total supply has been locked to Uniswap, a decentralised finance protocol that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain.
The remaining 50 per cent was burned to Ethereum co-founder Vitalik Buterin.
“Everyone has to buy on the open market, ensuring a fair and complete distribution where devs don’t own team tokens they can dump on the community,” the website states.
However, according to Binance, “the top no 1, no 2 and no 5 wallets hold 50.5 per cent, 7 per cent and 3 per cent of total supply respectively”.
The coin’s mascot is the Shiba Inu dog, the same breed that represents Dogecoin. It has also nicknamed itself the “Dogecoin Killer”.