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Why is Shiba Inu coin still on the rise?

Experts remain unsure why the Shiba Inu coin has shown so much resiliency

Pictures of dog bowl, which mimics baby doge.
Pictures of dog bowl, which represents the Shiba Inu cryptocurrency coin.
Illustration by Alex Cochran, Deseret News

The Shiba Inu cryptocurrency coin continues to rebound and rise — despite several months of dips and drops. And some experts remain unsure why that is.

Professional Shiba Inu coin traders told CoinDesk.com that they remain unsure why the meme-based cryptocurrency has such resiliency.

  • “SHIB is like this ‘retail-traders-take-over-the-world’ magic token” a SHIB community member named Darren told CoinDesk.com.
  • Darren said SHIB coin holders don’t follow the patterns of Bitcoin or other cryptocurrencies, so it’s hard to track the coin.

Du Jun, co-founder of crypto exchange Huobi, told CoinDesk.com the user base is primarily on social media, which helps it grow.

  • “Shiba Inu has a strong user base and its projects are relatively simple and easy to understand for crypto beginners,” Du said.

Shiba Inu coin recently suffered a slight drop, which came after a huge week of gains, as I wrote for the Deseret News. There was a significant rise for the coin because a “mysterious whale” bought “massive amounts of Shibu Inu” in recent days, per Yahoo Finance. This increased the rarity in the coin, which increased its value.

  • Before that, Tesla CEO Elon Musk tweeted a picture of his dog, a Shiba Inu breed, named Floki. The #SHIB hashtag started trending worldwide.
  • And, before that happened, Coinbase added the Shiba Inu cryptocurrency coin to its app, allowing more people to trade it.

However, the constant rises and dips show that the cryptocurrency market can be volatile and constantly changing. The Financial Conduct Authority warned people that cryptocurrency coins can be a risky investment because of the shifting market.

  • “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.”