Memecoin Price War: Shiba Inu Coin Suddenly Drops 50% as Elon Musk Signals Dogecoin Support

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Shiba Inu, is the challenger for dogecoin’s meme-based crypto crown. In recent weeks, has stormed into crypto top ten.

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Shiba Inu is known as the “dogecoin murderer” and has seen his stock rise on unfounded expectations. Robinhood, a crypto exchange Kraken, and trading app Robinhood could both be preparing to list the memecoin.

A shiba whale shifted almost $3 billion worth of shiba tokens out of its original wallet this week. This raised concerns that large holders might be looking to cash in.

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“It appears like there were four transactions from that account yesterday. Each sending $695 million worth of shibs to a different account–a total of $2.78 Billion,” Tom Robinson, cofounder of Elliptic blockchain forensics company, told Bloomberg. “The shib was purchased around a year ago for a very low price on Uniswap.”

If large holders of cryptocurrency, such as bitcoin, shiba Inu, or dogecoin, start moving coins, traders could be fooled into believing that the market is about to flood, which could lead to a drop in price. Researchers warned that the bitcoin ecosystem was still dominated and concentrated by large players, making it vulnerable to systemic risk.

Although the shiba Inu coin price is still at 500%, it has lost 50% over the past week. The price of Shiba Inu has shot up amid speculation Robinhood might be adding the cryptocurrency to its platform, which would allow the market to thousands more traders. Vladimir Tenev, chief executive of Robinhood, dismissed these hopes, citing regulatory scrutiny.

Kraken, a crypto exchange, tweeted that it would list shib tomorrow if it received “2,000 likes” on a tweet. Kraken replied to the post by saying that it had received over 80,000 “likes”. However, he added: “We have more work as we go through our listing review process.”

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As shib Inu struggles to keep its huge gains, dogecoin has continued to get support from Elon Musk, a Tesla TSLA +2% billionaire, and crypto influencer.

Musk responded via Twitter to Billy Markus, co-founder of dogecoin, “HypeHype”, who had suggested that “get-rich quick people” would bail if “a new hype” emerges

Markus tweeted, “Hype doesn’t last and attracts get rich quick people who will bail once theirs is available and/or when a new buzz appears.” Add lasting value to your product if you want it to be more valuable than it is now. Hype is nothing.”

Musk adopted dogecoin this year as his pet project. He asked developers to submit upgrades and miners to upgrade to the latest version. Musk said that dogecoin could beat bitcoin if it lowers transaction fees and speeds up transactions.

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