Elon Musk apparently left Dogecoin behind for a shiny new dog coin; Shiba Inu . Shiba Inu is a breed of dog. More specifically, the dog used in Dogecoin memes is a Shiba Inu. Given the popularity of Dogecoin, the coin appears to have been created to benefit from that popularity.
The coin is created by someone who is only known by the name Ryoshi. Little else is known about the founder. This is very similar to the bitcoin case with Satoshi Nakamoto. A nickname that no one has claimed is them to date.
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Musk posted a cryptic tweet on his Twitter earlier today apparently in reference to a breed of dog he’s getting. But the message behind the tweet was received loud and clear by the market.
The tweet simply said, “My Shiba Inu will be called Floki.”
After the tweet was posted, the price of Shiba Inu rose rapidly. Going up 23% in a couple of hours.
More interesting is the creation of another dog coin called Floki. The coin appears to have been created after Musk tweeted and now the coin is up a whopping 3,000 percent.
The Rise of the Dog Coins
The billionaire has always been a staunch Doge fan. Always tweeting in support of the coin and the project. He calls it the currency of the future. But it wasn’t until a couple of months ago that the billionaire’s tweets started driving the coin to the pumps.
With the market price movement following his tweets, people seem to have started holding on to the billionaire’s every word. Putting money in a freshly made coin just because you mentioned you were going to name your dog that.
Shiba Inu price rises after Elon Musk tweet | Source: SHIBUSD at TradingView.com
This is not the first time Elon Musk has mentioned Shiba Inu. He referenced the coin in early March when he tweeted that he was going to get a new dog. A Shiba Inu breed. The tweet read: “I am receiving a Shiba Inu. #resistanceisfutile “.
The tweet did not mention the coin itself. But nonetheless, people took it as such and the coin pumped. SHIB, as the Shiba Inu coin is commonly known, has pretty much followed the Dogecoin pattern ever since. Going up and down accordingly every time Musk tweeted and people bought the coin.
Doge and subsequent dog coins
There have been a number of meme coins made as a nod to Dogecoin. Coins like DogeFather, Shiba Inu, ShibaPup, and others. Shiba Inu promotes himself as the Dogecoin killer.
These coins don’t really have use cases. If anything, they are just coins made to pump and dump and make a quick buck. There is nothing extraordinary about the projects themselves.
But what is remarkable is how these coins seem to gain market value. Coins that apparently have nothing to offer to the market in some way end up with a huge market valuation. Shiba Inu currently has a market capitalization of $ 7.32 billion.
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All of these coins have one thing in common; they all refer to dogs.
The very Dogecoin that started it all was created as an “ironic” joke towards bitcoin and the cryptocurrency market. He was not meant to do anything. Even the founders sold all their coins from the beginning.
Musk has been talking about getting a Shiba Inu for months, but he still hasn’t. And people are using their tweets to manipulate the market.
It is unknown if Musk wanted the tweets to promote the coin. But investors certainly think that’s what you should do.
Musk has been talking about getting a Shiba Inu for months, but there are none in sight.
Featured Image from Observer, Chart from TradingView.com