Cryptodog? Elon Musk’s tweet confuses investors and the cryptocurrency Shiba Inu overvalues.
“I’m buying a Shiba Inu”, says Elon Musk
Elon Musk, founder of Tesla and now the world’s second richest man, set off another exponential run in the cryptocurrency market.
Known for being a fan of the Dogecoin (DOGE) cryptocurrency, whose logo is a dog of the Japanese Shiba Inu breed, Musk always gives the cryptocurrency a boost by tweeting about it.
Created in 2013 by Billy Markus and Jackson Palmer, DOGE was inspired by a dog meme and initially started out as a joke. In one year, the asset rose by 3474%, driven by a wave of ironic endorsements from Musk, Gene Simmons, lead singer of KISS, and from the rapper Snoop Dogg.
It’s undeniable that cryptocurrencies are becoming more and more mainstream. With mass adoption of digital currencies, more people are choosing to invest in cryptocurrency and make a profit, especially using automatic tools like Bitcoin Buyer.
It’s inevitable pic.twitter.com/eBKnQm6QyF
— Elon Musk (@elonmusk) July 18, 2020
This time, however, the cryptocurrency Shiba Inu (SHIB) appears to have benefited much more than DOGE.
Homonymous to the Japanese canine breed, SHIB is an ERC-20 token (Ethereum) that can be traded in decentralized brokers, such as 1Inch and Uniswap.
In a recent tweet, the billionaire CEO of Tesla and SpaceX said that he will buy a Shiba Inu, reinforcing his appreciation for the “DOGE” meme.
I’m getting a Shiba Inu #resistanceisfutile
— Elon Musk (@elonmusk) March 14, 2021
Shiba Inu’s token (SHIB) values more than 150% in 24 hours
Musk’s tweet did not make it clear whether the billionaire was referring to the purchase of DOGE, SHIB or a new dog.
After his tweet, which was referring to a dog, the Shiba Inu (SHIB) token rose 107.3% in 24 hours, according to data released by Livecoins website.
From the data presented above, it is noted that the crypto market’s investors were mistaken and thought Elon Musk was referring to the cryptocurrency SHIB.
According to information on the official website, the $ SHIB token is self-styled as a “decentralized community”. Its aim is to allocate skills within the community to appropriate roles in the development of SHIB and to collectively agree on decisions for its future.
In addition, there is information that the asset intends to launch SHIBASWAP, a kind of decentralized brokerage (DEX) in April this year.
Shiba Inu (SHIB): DOGE killer?
Despite the short time in the market, the $ SHIB is known to have been used in PUMP and DUMP schemes, which brings some uncertainty to investors who decide to bet on the digital asset.
Another worrying factor is that the SHIB community itself promoted the asset on Musk’s Twitter as if he himself had spoken of the SHIB token, instead of the dog. Such an attitude, in turn, was considered a lack of honesty.
“Buy $ SHIB before it’s too late,” say most retweets to Elon Musk’s post.
As a result, the asset, which calls itself “DOGE killer”, overvalued, was sold by the founders and recently started to see its price plummet, according to information from CoinMarketCap.
Musk shows willingness to support DOGE
As for Dogecoin, Elon Musk was willing to give full support to the digital asset. In March of this year, the billionaire said he would give his full support to the cryptocurrency if the whales that own the meme-based crypto sold most of their shares. The billionaire investor also said he would pay in real dollars if the cryptographic whales canceled their accounts.
Musk’s affection for DOGE began in April 2019, when the businessman was chosen as the leader of the DOGE community through a vote on Twitter.
Satisfied with the new “charge”, Musk wrote that Dogecoin could be his favorite cryptocurrency.
From then on, every new billionaire’s tweet about the digital asset has caused the currency to skyrocket.
Dogecoin (DOGE) shoots 20% after Musk tweet
After a while away from social media, Elon Musk started a frenzy on Twitter again. In his publication, the billionaire hinted that he would take the DOGE price to the next level.
Literally pic.twitter.com/XBAUqiVsPH
— Elon Musk (@elonmusk) February 24, 2021
Returning to showing all his affection for Dogecoin’s cryptocurrency, Musk took advantage of April Fool’s Day, to make a joke that he would really take the digital asset to the moon.
SpaceX is going to put a literal Dogecoin on the literal moon
— Elon Musk (@elonmusk) April 1, 2021
After the tweet, Dogecoin’s cryptocurrency has skyrocketed 20% in the past 24 hours, jumping from $ 0.052 to $ 0.64, according to CoinMarketCap data.
