Shiba Inu, the meme cryptocurrency modelled after another meme cryptocurrency, is taking the crypto world by storm. The token rose by 367 per cent in just a week, securing the 12th largest cryptocurrency spot.
The SHIB token has run past holders like Litecoin and Avalanche’s AVAX in cryptocurrency market value, according to CoinGecko prices.
The token was created just a year ago by someone called Ryoshi. It was seen as a rival to a fellow meme coin that slowly turned serious, Dogecoin. Both tokens use the symbol of a Shiba Inu, a breed of dog native to Japan. While Dogecoin used the image of the infamous Doge meme, the SHIB token uses the image of a Shiba Inu puppy.
The latest rally for Shiba Inu is courtesy of a tweet by Elon Musk, the CEO of Tesla and SpaceX. The billionaire’s tweet of a picture of his own Shiba Inu puppy, Floki Frunkpuppy, started the ball rolling for SHIB.
Musk and his tweets have had a tremendous impact on cryptocurrencies, especially this year. His posts on Bitcoin, Dogecoin, and SHIB token have swung prices wildly in either direction.
The news of Tesla accepting Bitcoin for car purchases started the bull rally for the cryptocurrency earlier in the year when Bitcoin prices reached their height of $64,000. But his subsequent turn away from Bitcoin due to its high energy costs started the cryptocurrency crash as well.
SHIB token’s expeditious rise in price comes at a time when the wider cryptocurrency market has also been performing well. Bitcoin has managed to rise by 30 per cent and is trading above $50,000 for the first time in months while other large crypto tokens like Ether have been gaining as well.
The token received notoriety in India when Vitalik Buterin, billionaire and founder of Ethereum cryptocurrency, donated 50 trillion SHIB tokens to a crypto relief fund for India’s COVID-19 relief efforts during the disastrous second wave that wrecked the country.
(Edited by : Anilkumar Narayan)
First Published: IST