The Elon Musk effect is confirmed once again. On Twitter, the boss of Tesla, promoter of DOGE and Bitcoin, this time evokes another token, the Shiba Inu. Result: + 300% in a few hours.
He obviously can’t help himself. Elon Musk is indeed used to enigmatic messages posted on social networks. His tweets have thus, in the past, had a notable influence on the value of certain cryptocurrencies.
The latest episode concerns a token that is probably very largely unknown: Shiba Inu or SHIB. This name designates a breed of dog that originated in Japan. It is also the emblem of Dogecoin, a rising crypto-asset.
Contributor or detractor of crypto-assets?
Apparently unrelated to crypto, Musk therefore indicated on Twitter to his millions of followers that he was considering purchasing a Shiba Inu dog for his home. No reference to the crypto universe?
This direct reference or not has in any case had the effect of boosting the value of the crypto project Shiba Inu (SHIB). CoinGecko indeed finds that the price skyrocketed 300% within hours of the Tesla CEO’s tweet.
The Musk Effect strikes again. A simple fantasy? Not at all, even if its consequences are variable geometry. Blockchain Research Lab sought to assess this through a study looking at the effects of six tweets.
In 4 of the 6 cases, little or no significant price reactions. On the other hand, for the last 2, the researchers note ” huge increases in trading volumes and large and significant positive abnormal returns. ”
Dogecoin less sensitive to Musk’s tweets
So traders have every interest in staying on top of the leader’s messages. Success is not guaranteed, however. Last weekend, Musk published several tweets related to Dogecoin. The effect was minor (+ 4.6% in 24 hours), much less than in February after another round of messages.
If the DOGE was initially a joke for Elon Musk, his interest now seems to leave this field alone. Asked about the advisability of listing the token on Coinbase, the investor replied ” Yes ” without hesitation.
However, the billionaire’s tweets alone cannot explain the rise in crypto-assets in recent months. Earlier this year, the value of DOGE hit an all-time high of $ 0.08. With a capitalization of $ 6.1 billion, the token ranks among the top 20 cryptos.