The price of Shiba Inu (CCC:SHIB-USD) is rallying after consumer electronics retailer Newegg Commerce (NASDAQ:NEGG) announced that it will accept the cryptocurrency as a form of payment in time for the busy holiday shopping period.
SHIB’s price is up 33% this morning, partially on news that Newegg has recognized the digital token as a legitimate form of payment.
Today’s move also comes as the popular cryptocurrency exchange Kraken prepares to list Shiba Inu, and on growing speculation that SHIB may find some purpose in the metaverse, a virtual reality environment where people socialize and conduct business. The good news is helping lift Shiba Inu’s price after a difficult month in which it slumped 28%.
What Happened With Shiba Inu
In a news release, Newegg Commerce, an online retailer of computer hardware and consumer electronics that’s based in City of Industry, California, said that it will now accept SHIB as a form of payment on its platform. The company made the news official by placing an announcement on America’s largest billboard.
Hey #ShibArmy, how we looking on America's largest digital out-of-home billboard? @ShytoshiKusama #Shib
We'll be officially accepting @Shibtoken in by early December via @BitPay https://t.co/MR2ydiQpq6 pic.twitter.com/MyuxHSIjVw
— Newegg (@Newegg) November 30, 2021
Newegg refers to itself as a “pioneer” in the cryptocurrency sector, having been the first e-commerce company to accept Bitcoin (CCC:BTC-USD) as a form of payment back in 2014. Earlier this year, Newegg began accepting both Dogecoin (CCC:DOGE-USD) and Litecoin (CCC:LTC-USD).
News of Newegg accepting Shiba Inu as payment beginning in early December coincides with the cryptocurrency being listed on the Kraken exchange today. Supporters of SHIB see the listing as further legitimizing the digital token. Kraken says that the minimum required deposit is 373,000 SHIB, and that the token will be tradable against the U.S. dollar and Euro.
Why It Matters
The positive news and price rally come at an important time for Shiba Inu, whose price has been slumping in recent weeks.
For less familiar investors, Shiba Inu is relatively new, but it is still immensely popular. While it started out as a riff on meme coin Dogecoin, it has been working to evolve. In fact, its ecosystem has grown increasingly robust. Now, according to a blog post, it appears to be evolving further to participate in the realm of metaverse gaming.
Exactly what this will look like remains unclear. However, investors do know that Shiba Inu is touting a partnership with a well-respected mobile game developer. Additionally, other key partnerships appear to be in the works.
However, before diving in, investors should remember that SHIB is speculative. Its price has moved in the past on Elon Musk tweets, including photos of his own Shiba Inu puppy. News today from Newegg and of the Kraken listing are at least substantial developments that warrant price movement.
What’s Next for the SHIB Crypto
Shiba Inu is taking a couple of significant steps forward today with its listing on the Kraken exchange and as Newegg begins accepting the digital token as payment for its electronics products. These developments certainly help to legitimize SHIB.
That said, this is a cryptocurrency that continues to trade for a fraction of a penny and has no real purpose or utility. Investors wanting exposure to the crypto sector can find many more legitimate ways to invest their money than in a digital token that features a cartoon image of a Japanese hunting dog.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.