SHIBA Inu's price has rocketed more than 50% after Elon Musk tweeted about the cryptocurrency.
The coin has soared in value and is now worth $0.00001345 and trading volumes have also shot up.
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Shiba Inu is the most traded cryptocurrency behind only Tether, bitcoin and ethereum over the last 24 hours, according to coinmarketcap.
Investing is cryptocurrencies is incredibly risky, the price can go down as well as up in the blink of an eye, and you could lose all your money.
You should only ever invest money you can afford to lose and in financial products that you understand.
Cryptocurrencies are not regulated and there is no one to complain o if something goes wrong.
Newer coins are also riskier than more established tokens like bitcoin and ethereum.
Mr Musk, the billionaire entrepreneur behind Tesla, tweeted a picture of his dog.
The pup is a Shiba Inu breed which is the mascot of the cryptocurrency Dogecoin.
Shiba Inu was launched as an alternative to Dogecoin and also uses the dog as its logo.
Shiba Inu was created in August 2020 and was listed on leading currency site Coinbase in June this year.
Musk is known to be a fan of Dogecoin and has been nicknamed the Dogefather.
Dogecoin was originally created as a joke but has since gained attention among cryptocurrency investors and is among the biggest cryptocurrencies.
The price of Dogecoin is also up 11% in the last 24 hours and is currently trading at $0.2393 at the time of writing.
Cryptocurrency prices can often move up or down when Mr Musk tweets about digital coins.
Myron Jobson, personal finance campaigner at interactive investor, said: "It's a case of déjà vu as a tweet from Elon Musk has once again helped propel the price of Shibu Inu – albeit unwittingly.
"Elon Musk has amassed a sizeable fanbase who hang on his every word when it comes to his views of cryptocurrency - and often fuels an already high level of volatility in the crypto market.
"Here , a picture of Musk’s very own Shina Inu pup was enough to generate hype around the coin."
But no cryptocurrency has any inherent value and comes with big risks - even if they have high profile support.
Mr Jobson said: "FOMO (fear of missing out) helps propel the price of cryptos like Shiba Inu which has an intrinsic value of zero, and tweets from high profile individuals who have a significant influence on crypto market movements help fuels the hype train.
"But many altcoins like Shiba Inu have tended to suffer when the buzz around them on social media dies down.
“Volatility is an innate characteristic of cryptocurrencies and whatever your approach to risk, cryptos should be treated with caution.”
What are the risks of investing in crypto?
Below we round up five risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
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October 05, 2021 at 06:07PM
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Shiba Inu price soars 52% after Elon Musk tweets – should you avoid it... - The Sun
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