The real reason Shiba Inu cryptocurrency coin crashed
A single whale investor in Shiba Inu coin might have spooked plenty of people from keeping their investments in the meme cryptocurrency.
Did a Shiba Inu coin whale move crypto coins?
Per Forbes, a single Shiba Inu whale investor — someone who purchases a lot of a single item, increasing the rarity and driving up the price — moved about $3 billion worth of Shiba Inu tokens from its original wallet, which sparked concern that some larger Shiba Inu holders would cash out.
- “It looks like there were four transactions out of that account yesterday, each sending $695 million of shib to a different account — so a total of $2.78 billion,” Tom Robinson, co-founder of blockchain forensics company Elliptic, told Bloomberg about the whale investor. “Whoever it is purchased the shib on Uniswap about a year ago, for not very much.”
So what does this mean? According to Forbes, the move might spook some Shiba Inu coin holders.
- “If large cryptocurrency holders — be it bitcoin, shiba inu or dogecoin — begin moving coins, traders can be spooked into thinking the market could be about to be flooded, potentially driving down the price,” per Forbes.
Why did Shiba Inu coin crash?
This fits with what I wrote about Shiba Inu coin earlier this week. Per Benzinga, Shib coin saw a massive crash “as investors anticipated moves by whales to liquidate their holdings by sending coins to exchanges.”
The Shiba Inu community was slightly upset by the news from Kraken, a cryptocurrency example platform that said it would not add Shiba Inu coin to its platform yet because it’s still going through a review process, as I wrote for the Deseret News.
- “Many users questioned why the exchange would make a pledge it did not intend to honor, while others threatened to delete their Kraken accounts,” according to Business Insider, “Yet others called on fans to have patience.”