Elon Musk and Twitter Reach a Deal for Sale, What Does This Mean For Meme Coins Like SHIB?
2022-04-27 16:30:51
Does The Shiba Inu Coin Have A Future After Elon Musk Acquired Twitter?
When the news broke that Elon Musk had become the largest shareholder of Twitter, there was a lot of speculation as to whether his next step was to buy Twitter outright. Finally, this man struck a deal on Monday to buy Twitter for roughly $44 billion. According to data compiled by Dealogic, it would be the largest deal to take a company private.
In response, Twitter co-founder and former CEO Jack Dorsey commented that “Twitter is the closest thing we have to a global consciousness. Solving for the problem of [Twitter] being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”
Data from Gate.io showed that DOGE has risen more than 32% on April 26 while SHIB also climbed 8%. Unfortunately, the gains from both coins were also lost in today's massive market crash. In fact, by decreasing more than 20%, the top two meme coins are leaning towards a bear market this year.
However, thanks to their price increase, Doge was worth $17.9 billion and Shiba was worth around $14 billion. This means that both of these two meme coins have a market cap of nearly two times that of AMC Entertainment. Moreover, the daily turnover of Dogecoin was over $341 million while the Shiba Inu coin also had a similar daily trading volume of $324 million, which is 36 times the daily trading volume of Hyatt Hotels Corporation.
Back on April 11, Elon Musk, also known as the so-called dogfather, said that if he bought Twitter, perhaps users could buy its premium service – Twitter Blue – and pay in Dogecoin. Meme coins are always criticized for absolutely no utility, or no potential for utility. Now, Elon gives DOGE a promising utility.
How about SHIB? While it is also trending across the social media landscape under the chaos brought by Twitter acquisition, it has already become a hot topic with several announcements and upgrades for some time and has been at the forefront of attracting more investors lately.
First of all, the developers behind Shiba Inu have launched a new burning mechanism which allows holders to burn their tokens while earning passive income.
At the same time, as the concept of metaverse heats up, SHIB also announced their own metaverse with 100,595 plots of virtual lands not long ago.
With the new burning mechanism, it is definitely beneficial to investors who want to buy shiba inu coin because it will gradually become a scarce crypto asset that is preferred over one with an unlimited supply or high inflation rates. Lastly, the launch of the Metaverse project is to tell investors that SHIB has a future they can believe in.
When the news broke that Elon Musk had become the largest shareholder of Twitter, there was a lot of speculation as to whether his next step was to buy Twitter outright. Finally, this man struck a deal on Monday to buy Twitter for roughly $44 billion. According to data compiled by Dealogic, it would be the largest deal to take a company private.
In response, Twitter co-founder and former CEO Jack Dorsey commented that “Twitter is the closest thing we have to a global consciousness. Solving for the problem of [Twitter] being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”
Meme coins recated
As you may know, Elon Musk has been a big booster of the meme-based cryptocurrencies, often pushing their price higher with just a tweet, and the best examples include the Dogecoin (DOGE) and the Shiba Inu Coin (SHIB). Therefore, it is not at all surprising that these two coins have been the biggest beneficiaries of this acquisition.Data from Gate.io showed that DOGE has risen more than 32% on April 26 while SHIB also climbed 8%. Unfortunately, the gains from both coins were also lost in today's massive market crash. In fact, by decreasing more than 20%, the top two meme coins are leaning towards a bear market this year.
However, thanks to their price increase, Doge was worth $17.9 billion and Shiba was worth around $14 billion. This means that both of these two meme coins have a market cap of nearly two times that of AMC Entertainment. Moreover, the daily turnover of Dogecoin was over $341 million while the Shiba Inu coin also had a similar daily trading volume of $324 million, which is 36 times the daily trading volume of Hyatt Hotels Corporation.
Will the price of meme coins continue to go up?
Back on April 11, Elon Musk, also known as the so-called dogfather, said that if he bought Twitter, perhaps users could buy its premium service – Twitter Blue – and pay in Dogecoin. Meme coins are always criticized for absolutely no utility, or no potential for utility. Now, Elon gives DOGE a promising utility.
How about SHIB? While it is also trending across the social media landscape under the chaos brought by Twitter acquisition, it has already become a hot topic with several announcements and upgrades for some time and has been at the forefront of attracting more investors lately.
First of all, the developers behind Shiba Inu have launched a new burning mechanism which allows holders to burn their tokens while earning passive income.
At the same time, as the concept of metaverse heats up, SHIB also announced their own metaverse with 100,595 plots of virtual lands not long ago.
With the new burning mechanism, it is definitely beneficial to investors who want to buy shiba inu coin because it will gradually become a scarce crypto asset that is preferred over one with an unlimited supply or high inflation rates. Lastly, the launch of the Metaverse project is to tell investors that SHIB has a future they can believe in.
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