Elon Musk’s tweet about what appears to be a rabbit holding up an emoji of something that could look like rockets has sparked another digital token rally. The Shiba Inu (CCC:SHIB-USD) meme-based cryptocurrency, SHIB, jumped 14% and roughly $3.8 billion minutes after the post, highlighting once again the helter-skelter nature of the altcoin.
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At this point, purchasing Shiba Inu might seem like buying a lottery ticket. You don’t know whether it leads to anything substantial, but you are hoping against hope that it does.
The thing is, a lottery ticket doesn’t have an eccentric billionaire like Musk backing it up. The rallies we see in price might not be sustainable, but the money is being made and no one cares about much else.
At the heart of all this momentum is demand pressure. People are buying this coin because celebrities and influencers are hyping it up. And it has returned a phenomenal 26,918,840% over the last year.
People who are millionaires because of buying this coin at the right time will now swear by them.
While crypto millionaires are a real thing, the use cases and utility set each coin apart. Although Shiba Inu has an excellent development team, they have not set the coin apart in terms of functionality. Ultimately, purchasing something with no inherent fundamental value is not a prudent financial decision.
Celebrity Culture and Shiba Inu
Crypto-mania is sweeping the world. It’s a phenomenon that has taken over social media, and there are even people who only know about crypto from what they see on their favorite newsfeeds.
I don’t think we’ll be able to stop this soon; with everyone using these same platforms, it will continue spreading like wildfire until everything becomes either cryptocurrency-related or else filled up by some celebrity gossip article instead (unless you hop off right now).
This phenomenon has a massive effect on the investing world as well. The Chinese are on a quest to buy all the SHIB coins, even though they have no practical use. Traders in China know about the intrinsic value of the token, and yet still invest their money into them because of the hyped-up nature of the coin.
Recently, the Chinese social media site Weibo is lighting up with conversations about Shiba Inu. In a way, it mirrors what is happening with Reddit stocks back here in America.
A Chinese billionaire and venture capitalist named Charles Xue Biqun mentioned it several times to his more than 11 million followers that are keeping up interest in cryptocurrency projects like these.