Daily Stock Market News

Robinhood Listing Rumor Sends Shiba Inu 13% Higher Today

What happened

Dog-inspired meme tokens had a generally good day Wednesday. But Shiba Inu (CRYPTO:SHIB) significantly outperformed other large-cap meme tokens such as Dogecoin (CRYPTO:DOGE). As of 3:50 p.m. ET, Shiba Inu was up by 13.8% over the prior 24 hours, while Dogecoin’s gains amounted to 4.9%.

To be sure, both tokens outperformed the broader crypto market, which rose by 3.5% over the same time frame. Broadly speaking, risk assets climbed Wednesday as investors took a sigh of relief following the Labor Department’s December consumer price index report. Inflation by that measure came in at 7% year over year, meeting the market’s expectations and avoiding the “what if” discussion analysts had been preparing for had it been higher.

In addition to the macro-economic news, Shiba Inu got a big jolt from rumors that Robinhood (NASDAQ:HOOD) could list the token as early as February. A tweet from BreakingCrypto Wednesday morning triggered a wild spike in SHIB’s price.

Any major listing on a widely adopted exchange is big news for the token in question. In the months following such events, most tokens take off. Accordingly, investors looking to get in front of this catalyst appeared to be buying Shiba Inu heavily.

Shiba Inu dog running in a field.

Image source: GETTY IMAGES.

So what

Rumors that Robinhood will list Shiba Inu aren’t new — they were influencing its price notably about a month ago. The token is highly traded, and exchanges that profit from trading volumes have an incentive to add the “hot” cryptos of the moment.

Previously, Robinhood had denied that its retail-friendly trading platform would be accepting Shiba Inu anytime soon. However, that didn’t prevent the resurfacing of these rumors from boosting the price this time.

Now what

It remains to be seen whether this latest iteration of the rumor will pan out, or whether it might have been just another smoke-and-mirrors attempt to get Shiba Inu’s price to jump in the near term. 

What’s clear is that momentum in the meme-token fringe of the crypto market has ebbed considerably. Investors looking to take profits and de-risk their portfolios appear to have more defensive assets in mind. Accordingly, many question how much persistence Wednesday’s surge for Shiba Inu will have.

That said, given the track record of this meme token, anything’s possible. Perhaps this is the start of another big rally. Time will tell. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Read More: Robinhood Listing Rumor Sends Shiba Inu 13% Higher Today

You might also like
A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.