The Shiba Inu cryptocurrency coin might have crashed again amid a recent surge.
Did Shiba Inu cryptocurrency coin crash?
Benzinga reports that Shiba Inu dropped 30% in a 24-hour period, which ended on Friday.
- The crash came after massive gains from the last week and despite increased social media discussion around the coin in the last few days, according to Benzinga.
- But after such a massive rise in the last few weeks, a dip in the coin’s value was expected to happen.
Why did Shiba Inu coin rise recently?
Shiba Inu coin had a massive jump in the last week, climbing 70% as of Wednesday. The coin even surpassed Litecoin and Avalanche’s AVAX to become the 12th-biggest cryptocurrency in the world, according to Bloomberg.
- Some of the success has been tied to a “mysterious whale” who bought “massive amounts of Shibu Inu” in recent days, per Yahoo Finance. Whales often invest a lot into an asset, increasing the rarity and the value of an individual item.
- Shiba Inu coin — which had a huge rise in spring 2021 before a dip — jumped again in value in recent weeks after Tesla CEO Elon Musk tweeted a picture of his dog, a Shiba Inu breed, named Floki. The #SHIB hashtag started trending and social media hype went wild for the coin.
- And it helped that Coinbase added the Shiba inu cryptocurrency coin to its app, allowing more people to invest in the product.
What cryptocurrency coins are rising?
Some other coins have been rising though in its place. Cryptocurrencies like Flokinomics, Baby Shiba Inu and SafeMoon Inu — all knockoffs of Shiba Inu coin, which is a knockoff of Dogecoin — all saw slight increases on Thursday night, per Benzinga.
What to know about investing in cryptocurrency
The Financial Conduct Authority issued a statement about cryptocurrencies, warning people that some crypto coins can be risky for investment.
- “Investing in cryptoassets, or investments and lending linked to them generally involves taking very high risks with investors’ money,” FCA’s statement said. “If consumers invest in these types of product, they should be prepared to lose all their money.”