What happened
Dog-inspired meme token Shiba Inu (SHIB -3.25%) surged 9.3% over the past 24 hours, as of 9 a.m. ET Tuesday. This move was in line with a broader rebound in the cryptocurrency market, which has rebounded 6.7% to $2.4 trillion this morning.
Shiba Inu appears to have regained momentum as traders speculate that Robinhood Markets (HOOD) could add Shiba Inu to its trading platform. Social media speculation is building, as a petition to see this meme token added to the Robinhood platform has received more than half a million signatures.
Image source: Getty Images.
So what
Last week saw the high-profile addition of Shiba Inu on popular U.S.-based crypto exchange Kraken. As most crypto investors know, key listings can boost the value of specific tokens in the short term.
For those speculating on Shiba Inu continuing to build momentum, such listings are key catalysts to watch. Accordingly, this high-profile petition is starting to gain attention among investors right now.
That said, Robinhood has continued to play coy with the idea of adding Shiba Inu to its trading platform. While fellow meme token Dogecoin can be bought on this platform, Robinhood appears to be taking a different view of meme tokens than other players. Robinhood Crypto Chief Operating Officer Christine Brown has reportedly brushed off the idea of adding Shiba Inu in the past.
Now what
Robinhood has remained non-committal for a reason. Shiba Inu remains one of the most volatile (and therefore riskiest) cryptocurrencies to own right now. Various notable headwinds of late relating to a broad crypto market sell-off this past weekend and a hack of the BitMart exchange, which saw SHIB tokens stolen, has investors on edge.
However, the trading volume and interest with this token may simply be too great to ignore. More than 500,000 signatures on any petition signifies tangible interest. Additionally, competition is heating up among various crypto-centric trading platforms and exchanges. For Robinhood, the potential upside from listing a token like Shiba Inu may indeed outweigh any longer-term reputational risks.
It should be noted that speculating on such near-term catalysts is not something worth most long-term investors' time. That said, volatility is a trader's best friend. Today, the volatility with Shiba Inu appears to be to the upside as a result of this speculative prospective catalyst, and traders are taking notice.
