WARNING: Experts warn the public to be wary of influencer ‘entertainment value.’
In 2021, the cryptocurrency market was shattered, with new altcoins swiftly outcompeting older tokens. Celebrities have played an important part in market movement, but experts warn that they may also be harmful.
New and fascinating coins like DOGE and Shiba Inu have influenced the evolution of cryptocurrency (SHIB). Their rise to the top of the alternative currency rankings has been aided by the efforts of influencers, including Elon Musk. The Tesla CEO has spent the last year promoting Dogecoin on Twitter, causing value peaks and troughs in other coins as a result of his influence.
DOGE rose into the top 20 most popular altcoins as a result of his constant support, with notable spikes as he shared memes to his 60.8 million-strong Twitter following.
Mr Musk tweeted a picture of his Shiba Inu puppy on Instagram last week, helping to boost SHIB’s value by more than 350 percent.
He also inspired developers, who have dubbed two new coins Floki Frunkpuppy and Floki Frunkpuppy after the new Musk arrival.
Both have made quick money, but experts have warned against putting too much reliance in the manipulations of a celebrity.
While these influencers have helped to pique interest, they can also lead to losses, according to Michael Kamerman, CEO of Scandinavian trading firm Skilling.
People should not buy currency based on the whims of a prominent figure, he told this website.
Mr. Kamerman explained: “Shiba Inu’s popularity has grown as a result of social media, and it is now the world’s 12th largest cryptocurrency.
“The cryptocurrency movement revolves around the masses and the information they seek.””
Tweets from billionaires like Elon Musk control the rise and fall of digital assets, as we’ve seen with Dogecoin and now Shiba Inu.
“While social media and financial gurus are excellent at introducing cryptocurrencies, investors must recognize the entertainment value of the internet and conduct their own research before making any judgments.
“It’s a high-risk investment, and like any other, you need to know what you’re getting into and make a sensible, emotionally sound decision.
“Crypto is on the rise, and as a result, we’ll likely see an increase in the number of platforms that provide the assets.”
Mr Kamerman’s assertions are based on actual evidence, which once again revolves around Mr Musk.
“Brinkwire Summary News” was his declaration in May that Tesla would not.