What happened
Over the last 24 hours as of 9:30 a.m. ET today, the price of Shiba Inu (SHIB -3.81%) had risen as much as 24% after the token was added to Robinhood's online investing platform. The token also appears to be rising due to an upcoming mechanism being added to the network that would burn SHIB tokens and reduce the overall supply.
So what
Robinhood announced Tuesday morning that it had added four tokens that can now be traded on the platform, including SHIB. The popular online brokerage has been slow to add tokens, largely because CEO Vlad Tenev has wanted to make sure they don't spook regulators by adding tokens that regulators believe are unregistered securities. The four new additions bring Robinhood up to 11 cryptocurrencies available on the platform. In comparison, SoFi's online brokerage offers 30 different cryptocurrencies for sale.
Image source: Getty Images.
The news is good for Shiba Inu because it makes the token accessible to potentially a whole new group of retail traders who have been asking Robinhood for more tokens. The platform has more than 17 million monthly active users.
In other news, Shiba Inu is expected to add a new burning portal to its network, which will burn tokens on every transaction, potentially removing trillions of tokens from circulation, which investors hope will drive up the price. Shiba Inu reportedly has roughly 1 quadrillion tokens in circulation.
Now what
Both of these events seem to be boosts for Shiba Inu. More exposure to millions of retail investors on an easy-to-use trading platform could certainly lead to more purchases, while future burning could take down supply, although I am not sure how much of a dent it would make.
I'm still not interested in investing in this cryptocurrency because it doesn't seem to have any real unique advantage other than a popular following, but these are positive developments for SHIB.
