On May 11, Bitcoin had a strong correction as the price sometimes dropped to around $ 54,500. Many other cryptocurrencies like Ethereum, Binance coin also dropped sharply.
However, a slew of low-value cryptocurrencies like Shiba Inu, Pig Finance, or Goat Cash rose several tens to hundreds of percent. This shows that crypto investors are rushing to buy animal-related currencies.
“Shiba Inu” recently confronted Dogecoin
The Shiba dog has long been associated with the Dogecoin cryptocurrency. This coin is also the billionaire Elon Musk mentioned regularly, increasing in price thousands of times over the past year.
However, it was the Tesla CEO who inadvertently made the value of another cryptocurrency based on the Shiba dog soar over the past few days. On May 7, in response to a user’s comment on Twitter, Musk said he was “looking for a Shiba dog”.
Immediately after this statement, the Shiba Inu (SHIB) currency increased sharply. After just a few days, the price of the Shiba Inu cryptocurrency has increased by almost 40 times. The market capitalization of this coin has increased from nearly 30 million USD to over 20 billion USD in just a few days.
In addition to Elon Musk’s quote, the fact that the Shiba Inu coin is traded on the Binance exchange also makes the value of this coin soar. After the news on May 10, the price of the Shiba Inu has increased by more than 2 times.
Shiba Inu calls himself “Dogecoin killer”. Besides the similar name, another similarity between Shiba Inu and Dogecoin is their enormous amount. After creating this coin, the founders transferred 50%, or 500 trillion Shiba, to Ethereum founder Vitalik Buterin. The other half is locked in Uniswap as collateral for transactions.
On his Twitter, Binance exchange CEO Changpeng Zhao explained that the reason for bringing the new coin to the exchange was due to the needs of users. Mr. Zhao did not forget to warn that this is a very risky currency.
“Don’t cheer on this coin, the risk is very high. This is not investment advice, ”said the CEO of Binance.
The goat and pig cryptocurrencies have grown strongly
In addition to the Shiba Inu cryptocurrency, many animal-inspired cryptocurrencies have also risen several times over the past day.
On May 11, Facebook CEO posted a photo of the two goats and their names were “Max and Bitcoin”. On the same day, the cryptocurrency called AquaGoat rose 500% in less than 24 hours. However, this currency also had a strong “price collapse” at the end of the day.
Previously, Pig Finance, a token-based on Binance Smart Chain, had a nearly 100-fold increase in just 3 days. Like AquaGoat, Pig also collapsed on the same day on May 11.
On crypto groups, the topic of “animal money” is hotly discussed. In addition to the two coins mentioned above, many other animals such as fox (Fox Finance) or Australian Shepherd (Australian Safe Shepherd) are also shared. These cryptocurrencies have all risen sharply over the past few days, showing that many investors are pouring money into little-known coins, originally intended for entertainment only.
From an initial market capitalization of just a few tens of millions of dollars, the price of animal coins increased causing their capitalization to reach billions of dollars. That shows investors around the world are pouring a lot of money into non-serious, purposeful coins.
However, like Dogecoin, their value depends a lot on celebrity news online. Therefore, it is not uncommon for the currency to increase several times and then fall a few times a day.
“Never invest large sums with you,” said Ben Weiss, co-founder of CoinFlip. Mr. Weiss also said that new investors entering the market, when not owning large, highly secure coins, should not risk animal coins.
“If you think this is a quick way to make money, then you should think twice,” Mr. Weiss warned.