Shiba Inu slumps after Musk reveals his crypto portfolio

Elon Musk decided to set his record straight on his cryptocurrency portfolio that doesn't include Shiba coins and reminded investors how much influence he has over market prices

Tesla CEO Elon Musk has revealed that he has bought Bitcoin, Ether and Dogecoin, before adding that he doesn’t own any Shiba Inu tokens – which instantly plunged the price by 15%.

It started with a tweet by SlumDoge Millionaire about a Benzinga crypto survey, which found that close to 33% of U.S. cryptocurrency investors have Dogecoin in their portfolios.

With his comments, Musk managed to slam the price of the Shiba Inu coin from its all-time high reached on Sunday. The token, centered around a breed of Japanese hunting dogs, has risen more than 400% in the past 30 days to be the 11th-largest by value.

On the other hand, Dogecoin has climbed about 10% in the last 24 hours, according to CoinGecko.

He said that many of his employees “on the production lines at Tesla or building rockets at SpaceX” own Dogecoin.

Musk pointed out that these individuals “aren’t financial experts or Silicon Valley technologists”, which is precisely what convinced him to “support Doge”, which he named the “people’s crypto.” But he said he has nothing to do with the not-for-profit Dogecoin Foundation.

He said neither he, nor his associate Jared Birchall, were on the advisory board of the foundation, which is working to promote the crypto via patents, advocacy, and trademark protection.

Still doubts about Shiba Inu success

Shiba Inu, which is rumoured to be launching its own crypto exchange, has rallied amid factors including a push to get it listed on Robinhood, its ecosystem’s raid into non-fungible tokens and general enthusiasm for meme assets.

Still, many market observers say there’s often little reason for its movements and warn that the token may have problems maintaining its current momentum.

Data from behavioral analytics firm Santiment suggests Shiba Inu whales are behind every one of the price pumps since $SHIB first took off this month.

“But keep an eye on $SHIB‘s whale transactions exceeding $100k. When these transactions come in bunches, price rises generally follow,” the report said.

David Hsiao, the CEO of Block Journal magazine, remains stirred his doubts regarding Shiba Inu’s continued success. He said the dog-themed trend has eased off lately in favor of DeFi and NFTs, adding that the price effect of hype eventually dies down.

“The dog-coin hype has slowed down significantly over the last few months and there are many other points of focus in the industry lately with far more substance, such as DeFi [decentralized finance] and NFTs,” he said.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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