Cryptocurrencies like Bitcoin are 'apolitical' says financial expert
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Prices of Shiba Inu have soared recently. The crypto rose by more than 400 percent this week alone. One of the key factors behind its meteoric rise has been down to Elon Musk’s promotion of the crypto. Here’s how Elon Musk’s tweet caused Shiba Inu’s rise.
Prices of the cryptocurrency alt coin, Shiba Inu, have flown this week.
The crypto surged by a staggering 400 percent this week as it hit a peak market cap of almost $14 billion on October 7.
But this recent rise hasn’t been entirely smooth; the price of the coin has dropped since its mid-week peak.
The currency has now dropped by almost a third since October 7.
On October 10, prices of Shiba Inu stood at $0.00002618.
But Shibu Inu’s recent rise should not be ignored – its midweek price surge made it the 12th most valuable cryptocurrency on the market for a short period.
The young crypto was only launched in August 2020, so its recent growth has been extraordinary.
One of the key factors behind its rise has been linked to a tweet posted by the CEO of Tesla, Elon Musk.
On October 7, Mr Musk wrote “Floki Frunkpuppy” on Twitter, accompanied by a picture of his new Shiba Inu puppy, named Floki.
This sparked a trending surge in Shiba Inu, with prices of the coin rising by 40 percent just hours after Mr Musk’s post.
On September 15 when Mr Musk tweeted: ‘Floki has arrived’ with a picture of his new dog, the currency surged within a few hours.
In the days after his tweet, the crypto had jumped by 1,000 percent.
Mr Musk is known to be a crypto enthusiast and sometimes takes to social media to share his views on the latest currencies.
His 60.6 million Twitter followers gives him quite an influential platform.
Nicknamed “the Musk effect” – tweets by Mr Musk have caused spikes in crypto prices.
On February 4 Mr Musk’s tweet: ‘Dogecoin is the people’s crypto’, caused the currency to suddenly jump by 50 percent in a day.
David Hsiao, CEO of crypto magazine Block Journal told Fortune: “The surge in SHIB (Shiba Inu coin) was most definitely kicked off by Musk’s tweet.
“Mundane actions like the tweet can be overly interpreted by the crypto community, and the response can be pretty wild.”
But despite Mr Musk’s influence the currency still has a long way to go before its $1 dream is realised.
Despite this week’s price rise, a single Shiba Inu coin is only worth less than one-hundredth of a penny.
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