First, the head of Tesla teased Shiba Inu fans by tweeting a photo of his puppy of this breed. This turned out to be enough to provoke a powerful pump in the market and bring the token into the ranks of the largest cryptocurrencies in terms of market capitalization. Now he also dumped, stating that SHIB is not included in his cryptocurrency portfolio.
Elon Musk, who often comments on cryptocurrencies on social networks, in response to a question about how much SHIB he has, replied that not at all.
Following a tweet from the Tesla founder, SHIB lost 26%, dropping from an all-time high of $0.0004465 to $0.00003286. At the time of writing, the coin is trading at is $0.000039, up by 0.50% in the last 24 hours.
The billionaire added that, out of curiosity, he "acquired several ASCII hash strings called Bitcoin, Ethereum, and Doge." Musk called the true value "creating products and providing services to others, not money in any form."
Out of curiosity, I acquired some ascii hash strings called “Bitcoin, Ethereum & Doge”. That’s it.
— Elon Musk (@elonmusk) October 24, 2021
As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form.
Will SHIB price maintain upward momentum?
Shiba Inu has skyrocketed in recent years due to a combination of factors, including the possibility of listing on Robinhood, the launch of ecosystem-based non-reciprocal tokens, and general enthusiasm in the cryptocurrency market.
Meanwhile, some experts are confident that the coin has a chance to maintain upward momentum.
“Meme tokens have become an investment trend in 2021. Low prices are attracting retail investors who can buy more than 20,000 SHIB for a dollar,” said Jonathan Cheesman, head of OTC trading at FTX.
Vijay Aiyar from Luno Pte believes that interesting communities are built around such coins, but it is very problematic to reliably predict or explain the dynamics of the token.
Aaron Chomsky, head of investment at ICB Fund, also believes that the basis of SHIB's current growth is not only related to Musk, but to the marketing activity in general, which is behind it. It generates high activity on social media, which translates into the desire of trading platforms to add the asset to their product lines. All of this creates a self-sustaining cycle.
“Founder Elon Musk’s statement about the absence of Shiba Inu in his portfolio will not necessarily signal the formation of a top in this meme-token. It can be expected that the public investing in digital coins will no longer take the comments of the head of Tesla so close to their hearts after he actually admitted that he holds bitcoin, and "a little" Ethereum and Dogecoin, and the activity on Twitter for him is one from forms of entertainment,” added the expert.
However, the investment department of ICB Fund emphasizes that while the hype is great, traders cannot be "switched", but in the end, the token may face the same "fate" as its progenitor DogeCoin - after peaks in May, DOGE lost 75% of its value and is still estimated 63% below their record values.
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