Why Shib coin’s big spike is a sign that the coin may not grow again.
Shiba Inu coin — a meme-based cryptocurrency token — skyrocketed to new levels last week before taking a big dip, showing to the volatility of cryptocurrency.
What happened to SHIB coin?
Last week, Coinbase added the cryptocurrency token to its list, allowing users to trade Shiba Inu coin on Coinbase.com and the company’s mobile app.
This week, Coinbase added the cryptocurrency token Shiba Inu coin to its list, allowing users to trade the token on Coinbase.com and the company’s mobile app. This move comes as part of Coinbase’s ongoing effort to expand its offerings and make it easier for users to buy, sell, and trade a variety of digital assets.
Shiba Inu coin is a relatively new entrant in the world of cryptocurrencies, having only been launched in August 2020. However, the token has already gained a considerable following due to its association with Dogecoin (another popular cryptocurrency). Like Dogecoin, Shiba Inu coin is based on the “Doge” meme, which features a cute Shiba Inu dog.
The addition of Shiba Inu coin to Coinbase is significant because it adds another layer of legitimacy to the token. Prior to this, Shiba Inu coin was only available on a handful of smaller exchanges. Now that it is listed on Coinbase, one of the largest and most well-known cryptocurrency exchanges, it is likely to see increased interest from investors and traders.
True to its meme-based origins, Shiba Inu coin has seen a number of wild price swings since its launch. After initially trading for just a few cents, the price of Shiba Inu coin surged to almost $0.40 in early May 2021. Since then, the price has come back down and is currently trading.
The Shib coin jumped by 35% in value right after, according to Mint, which monitors financial and cryptocurrency news.
Why Shiba Inu coin might not grow again
Shiba Inu coin had a spike in value because of the Coinbase launch, but the spike didn’t last long enough to show there was sustained growth, according to AMBCrypto, a cryptocurrency news site.
When Shib coin was listed on Coinbase Pro, it jumped 28.87% growth in just one day. Still, Shiba Inu coin could not surpass the 0.00001010 value it has been under since May when hype for the coin was high.
Shiba Inu coin skyrocketed after Coinbase added it this week
At that point, Shib coin investors sold all of their coins, which hurt the value, too.
“This kind of behavior is the exact reason why SHIB is an untrustworthy asset because it is literally treated like a pump and dump asset. The instances observed yesterday are similar to what we saw at the beginning of the July rally,” according to AMB Crypto.