Dogecoin and Shiba Inu gave investors something to smile about last week. On Wednesday, rumors of a potential listing on Robinhood sent Shiba Inu's price soaring at least 13% higher. The meme coin jumped 13% after Musk said that the company will allow merchandise to be purchased with Dogecoin.
All of those gains have been given up by both token. One of the stories could still have legs.
The image is from the same source.
Chump change.
It's good news that the company allows Dogecoin to be used in buying its products. The meme coin has a real-world utility. The impact probably isn't that great.
The company doesn't give any information on how much merchandise sales are. The company's income statement shows these sales in the "service and other" category. In the first nine months of the year, the company reported $2.74 billion in services and other revenue.
Non-warranty after-sales vehicle services are included in the description. The services make up the biggest part of the line item. The category includes sales of used vehicles, sales by any of the acquired subsidiaries to third parties, and vehicle insurance revenue. The total revenue for the line item is likely to be less than retail merchandise.
There is a question of how often customers will use Dogecoin. Even if the digital token was used for 10% of purchases, the total would still be relatively small -- and certainly not enough to justify Dogecoin's market cap rising more than $2 billion last week.
The demand is being expanded.
If Robinhood allows Shiba Inu to be traded on its platform, it will provide a big boost to the adoption of the meme coin. The valuations of all assets depend on supply and demand. The demand for the token would increase if Shiba Inu was listed.
The company reported that it had 18.9 million monthly active users in the third quarter. The company's transaction-based revenue was up in the quarter.
Right now, the trading platform only supports buying and selling six cryptocurrencies. It seems like more investors would buy Shiba Inu if it were available on the app.
How much will Shiba Inu make with a listing? Dogecoin has a good case study. Dogecoin's price went up 40% in the days after it was added to the trading platform.
Do you want to buy the rumor?
Should you follow Wall Street's advice and buy the rumor with Shiba Inu? Keep in mind that the rumors of thecryptocurrencies's price could already be baked into it. It is possible that management could take a long time before adding Shiba Inu.
I think that listing Shiba Inu would be more important for the two coins than allowing retail merchandise to be purchased using Dogecoin. The decision has been made by both companies.
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