Shiba Inu surges 16% on Elon Musk’s tweet, will it soar like Dogecoin?

New Delhi: Dogecoin spinoff Shiba Inu saw a six-week rise following billionaire Tesla CEO Elon Musk tweeting about the meme coin.

Musk, known for his penchant and keen interest in tweeting on all sorts of things from electric cars to space to cryptocurrencies, tweeted his “Shiba Inu will be named Floki”.

His tweet triggered a sort of frenzy for the meme coin as the digital currency rose by 16% in minutes after his reference.

My Shiba Inu will be named Floki

— Elon Musk (@elonmusk) June 25, 2021

Shiba Inu, the ‘Dogecoin killer’

Shiba Inu is a meme coin that brands itself as a “Dogecoin killer”.

The China-based cryptocurrency, which was modeled as a “fun” crypto has been drawing increasing attention among crypto enthusiasts and investors.

Shiba Inu earned the attention of world after Vitalik Buterin, the co-founder of Ethereum, donated $1 billion worth of coins to Covid-19 relief work in India last month.

Musk’s tweet had doubled Dogecoin price in May 2021

Elon Musk tweeted May 20, supporting Dogecoin cryptocurrency. Within hours, the value of cryptocurrency doubled. Following Musk’s tweet, price of Dogecoin spiked to $0.40 from $0.29

How much is that Doge in the window? pic.twitter.com/bxTkWOr50V

— Elon Musk (@elonmusk) May 20, 2021

Will Shiba Inu rise or fall?

The Dogecoin spinoff crypto coin has suddenly gathered attention of investors and is also gaining enough traction. However, analysts and market experts are still apprehensive about its consolidated growth.

Shiba Inu coin hit a big slump recently as it failed to capitalize on any new enthusiasm or hype, said FX Street, the agency which monitors trends for cryptocurrencies and stocks.

“The coin has been heading downward since May and hasn’t returned to the record highs it once reached,” it said.