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Does Elon Musk’s preference for Dogecoin over Shiba Inu make a difference

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Source: Unsplash

Tesla CEO, Elon Musk’s tweets helped Shiba Inu and Floki prices soar previously. However, this time around, his response plummeted the meme coin as he agreed to have bought no SHIB tokens.

Meanwhile, another user curiously asked if he has invested in Floki. Turns out, Musk had only acquired popular cryptocurrencies like “Bitcoin, Ether and Dogecoin.” He stated,

“Out of curiosity, I acquired some ascii hash strings called ‘Bitcoin, Ethereum & Doge.’ That’s it.”

He further went on to say, “don’t bet the farm on crypto!” Adding,

“True value is building products & providing services to your fellow human beings, not money in any form.”

Before the tweet, Shiba Inu was up 49% over the last 24 hours. After Musk’s confession, analyst Mr. Whale estimated that the meme coin has in fact lost 27% of value.

At press time, SHIB was down 7.8% from its ATH of $0.00004432 on October 24. Despite the fall, the “DOGE killer” seemed to have gained 13.0% over the last 24 hours, according to data by CoinGecko.

Source:CoinGecko

Having said that, it is noteworthy that the coin rallied close to 500% in the past month, backed by high trading volume. Recently, Watcher.Guru noted that SHIB has even surpassed the trading volume of Ethereum by over $1.6 billion.

What is considered as another positive move, SHIB continues to burn a part of its circulating supply. In the last one day, the meme coin has burned close to 900 million tokens.

However, Musk seemed to prefer DOGE over SHIB. He said that he supports DOGE as the “people’s crypto,” explaining,

“Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own DOGE. They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge – it felt like the people’s crypto.”

Billy Markus, DOGE co-founder agreed, that it is “fast, scalable, and inexpensive.”

Having said that, Musk said the focus will be on “lowering fees, decreasing block time and increasing block size. ” But, there have been no recent interactions on Twitter, between Musk and the DOGE development team.

Meanwhile, with the ongoing frenzy, the SHIB community did not look too happy with Musk’s tweet. David Gokhshtein of Gokhshtein Media LLC tweeted,

Mr. Whale opined that it is, in fact, time to book SHIB profits, predicting an upcoming token fall. He also said,

“Cryptocurrencies that provide real utility will flourish in the long run, while speculation-based coins will fade away. “

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Shraddha is a full-time journalist at AMBCrypto. She has a keen interest in personal finance and wealth generation. Her primary focus is on the cryptocurrency space's applications for investment vehicles and portfolios