Dogecoin killer Shiba Inu (SHIB) is a crypto topic of the hour due to exorbitant price increases. Now, an early investor has moved close to 10 percent of SHIB’s total holdings, sparking nervousness.
Some may continue to scoff at Shiba Inu (SHIB) as a meme coin and self-proclaimed killer of Dogecoin (DOGE) – but after a rapid price rally last week, a good $30 billion in market capitalization continues to gather behind SHIB, making Shiba Inu a heavyweight among altcoins. Experts are keeping a close eye on what is actually happening with SHIB and have already come across a particularly interesting case. Because in August 2020, a previously anonymous investor had invested 8,000 US dollars in Shiba Inu, which would be worth more than 4 billion US dollars at current prices. This account therefore hides double-digit percentages of all SHIBs in circulation, a whale is what this is called in the crypto scene.
The second part of the story of these SHIB investors can also be found in the public data of the blockchain. Because in the night to Wednesday, SHIB were transferred in four tranches each for the equivalent of about 600 million US dollars each from the original wallet to others. This represents a combined total of more than 5 percent of Shiba Inu’s total holdings and market capitalization. Does this investor want to partially liquidate some of his assets in SHIB and shift them to other cryptocurrencies or even U.S. dollars, the market has been wondering ever since. The price curve of Shiba Inu, at least, nervously buckled by ten percent, as such a massive offering of SHIB would have the potential to dump the price.
As of Thursday morning, however, the situation continues to appear harmless; so far, there are no signs that SHIB are on the move for sale. But critics also remind us that in Dogecoin, a few whales have also amassed huge amounts of DOGE and could become active at any time, which would likely trigger enormous volatility.
Conclusion: Shiba Inu and Dogecoin – pure speculative objects?
At the major crypto exchanges Binance and Coinbase, the order books for SHIB and DOGE are filled with the equivalent of only a few million US dollars, and a sudden billion-dollar offer is likely to cause a price crash. In this respect, critics are already right when they warn against Shiba Inu and Dogecoin as a serious investment already because of the whales. On the other hand, the decentralized crypto exchange ShibaSwap, which belongs to Shiba Inu, currently has a good 500 million US dollars in liquidity, which proves that SHIB has an actual use case. In any case, one thing cannot be denied for both controversial altcoins: Those who invested there early and kept their nerve have been rewarded with returns of 1,000 percent and more in 2021, even on smaller sales. And whether the huge market capitalization of Dogecoin and Shiba Inu will really only go down as a footnote in crypto history is by no means a foregone conclusion. But with these two coins and current prices, risks are much more apparent than with many other large-cap tokens whose roles are more clearly defined.
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