October was a month to remember for Shiba Inu. Not the dog breed but the cryptocurrency inspired by the Shiba Inu breed. The same breed that also inspired the Dogecoin. (seriously tho can we get some diversity on the dog breeds here?) Shiba Inu price has been spiraling down lately, losing nearly 40% in the last week.
As the coin price tanks, the crypto world has been focused on a "whale" wallet controlling billions of dollars worth of the token. This is the same whale that turned $8k into $5 billion as a result of the price rally. The whale has been moving the coins into different wallets, raising concern the holder was about to sell.
The whale did four transactions out of that account, each sending $695 million of SHIB to a different account -- so a total of $2.78 billion. The move triggered speculation on where the SHIB trillions would end up. There was no other indication that the SHIB whale was moving the tokens to the open market.
While the SHIB whale’s motivation for moving the tokens is unclear, the market reacted strongly as sell-offs increased and the price of the coin tanked.
Shiba Inu is not the first coin to trigger concern about high ownership concentration. Initially, Bitcoin and Ethereum were highly influenced by whales whose trades could sway market prices. Their ownership concentration has since declined, as more institutions and retail investors jumped into crypto. That said, even today about 2,000 addresses own more than 40% of all Bitcoin.
Short Squeez Takeaway: The coin drama highlights the large influence whales have in the cryptocurrency world. Even though every transaction is recorded on the blockchain and everyone can see it, still no one knows what TF will happen next given the anonymity of some of the players involved. This is what makes holding some of these "sh*tcoins" quite dangerous e.g. if you bought Shiba last Thursday, you probably don't have to worry about Biden's tax plan by now.