THE value of Shiba Inu has plummeted by more than 22% in the past 24 hours.
It comes as the meme token has soared in value recently, hitting several new all-time highs.
Shiba also rose in value earlier in October following a tweet by Elon Musk.
Mr Musk, the billionaire entrepreneur behind Tesla, has a Shibu Inu puppy and posted a picture of it on the social media site, which started a big rally.
In the past month, Shiba has skyrocketed by more than 500%, according to Coinbase.
Shiba Inu also spiked in May as Binance announced it would be listing Shiba Inu coins – which meant buyers and sellers could start trading them on the platform.
Shiba Inu, which launched last year, has proclaimed itself to be the "Dogecoin Killer".
However, investors should know that buying cryptocurrencies and decentralised finance tokens as well as stocks and shares is always a risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the money.
Cryptocurrencies are also highly volatile, so your cash can go down as well as up in the blink of an eye.
As always, you should never invest in something you don't understand.
Why is Shiba Inu down today?
The value of Shiba Inu is currently sitting at $0.00004897, according to CoinMarketCap.
Its value has shrunk by 22.65% over the past 24 hours.
A meme coin typically gains off a social media or an internet-based joke, meaning its value can fall if and when the internet loses interest.
The value of any investment also usually falls if large number of investors sell off their assets at the same time.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Shiba Inu also plunged in May alongside other cryptocurrency markets after recording major gains since the start of the year.
Bitcoin, for example, crashed as Elon Musk announced Tesla would no longer accept the cryptocurrency for buying cars.
He banned the payment method due to the environmental impacts of Bitcoin mining.
Experts believe the Shiba Inu altcoin has been created to ride the tailcoats of Dogecoin's success.
Antony Portno, founder of Traders of Crypto, previously said: "While Dogecoin has some actual merit as the one 'fun coin', Shiba Inu is a far more manipulative and cynical asset.
"It again has no real purpose or use case other than to make the founders money and has been created with a huge supply allowing for a very low price per coin in the hope that people who don’t understand these things will think it’s cheap relative to Doge.
"It's also very unclear who is behind the coin and what the circulating supply is which are both red flags to any sensible investor."
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies is essentially gambling and there are no guarantees that you will see what you pay in go up in value.
Cryptocurrencies are VERY high risk and a speculative investment, with limited track records and no underlying value.
There is also no guarantee that you can convert crypto assests back into cash, as it may depend on the demand and supply in the existing market.
Newer cryptos, such as Shiba Inu, are always riskier than those who've been around longer, like Bitcoin, meaning you're more open to scams.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, added: "Investors should treat trading in cryptocurrencies with extreme caution, and dabble at the edges of their investment portfolio, only with money they can afford to lose."
While Nigel Green, chief executive of deVere Group, said: "Extreme caution should be exercised before investing in un-tested cryptocurrencies.
"The price swings can be expected to be wild and there’s a legitimate risk that investors could get burned."
In January, the UK's Financial Conduct Authority warned that Brits risk losing ALL of their money if they invest in cryptocurrencies.
Meanwhile, an advert for a bitcoin exchange Coinfloor was banned in March for telling savers cryptocurrencies are a safe investment.
People considering investing in Bitcoin or shares and stocks have also been warned over "risky" tips being shared on TikTok.
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