SHIB Whale Sells Holding After 2021, Signifying This Memecoin Trend

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25 Feb 2024

STORY HIGHLIGHTS

A Shiba Inu (SHIB) whale sold nearly half a trillion SHIB tokens at a significant loss, highlighting the volatile nature of meme coins.
The sale involved 421.6 billion SHIB tokens at an average price of $0.000009437, executed on both the Binance exchange and a decentralized exchange (DEX).
This transaction resulted in a loss of $6.32 million for the whale, who had originally acquired the tokens in November 2021.

Shiba Inu (SHIB) whale has offloaded a substantial portion of their holdings, marking a pivotal moment for the meme-inspired digital currency. The transaction, which involved the sale of nearly half a trillion SHIB tokens, was executed at a considerable loss, according to data from the @spotonchain analytics platform. This event has highlighted the volatile nature of meme coins and underscored the changing trends within this niche market.

Whale’s Massive Sale and Market Impact

The sale, which amounted to 421.6 billion SHIB tokens, was conducted at an average price of $0.000009437, with transactions taking place on both the Binance exchange and a decentralized exchange (DEX), likely Binance DEX. The breakdown of the sale reveals that 311.6 billion SHIB were sold on Binance, while the remaining 110 billion were disposed of through the DEX. This move comes after the Whale’s initial acquisition of these tokens in November 2021 on HTX and Binance, holding onto them for nearly 2.5 years before deciding to sell.

The analytics platform @spotonchain has estimated that this sale resulted in a staggering loss of $6.32 million for the whale. This development is particularly noteworthy when SHIB is nearing a significant milestone in its price, potentially burning the fifth zero in its valuation. Despite a 0.67% increase in its price, bringing it close to the $0.00001 mark, SHIB has experienced a nearly 6% decline from its peak at $0.0000993 to its current price of $0.00000963.

Shiba Inu’s Burn Rate and Market Sentiment

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The Shibburn transaction tracker has reported a recent uptick in the SHIB burn rate, albeit marginal. 52,059,153 SHIB tokens were transferred to unspendable wallets, effectively removing them from circulation. The largest of these transactions saw 42,058,800 SHIB sent to a dead-end blockchain address, with the second-largest transaction moving 9,992,557 SHIB. This increase in burn rate, which saw a daily rise of 8,512% on Friday with 86.1 million SHIB burned, is a critical factor in the coin’s deflationary mechanism, potentially influencing its market value.

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The sale by the SHIB whale and the subsequent increase in the burn rate has sparked discussions within the cryptocurrency community regarding the future of meme coins like Shiba Inu. These events reflect the inherent risks and volatility associated with investing in such assets, often influenced by market sentiment and social media trends rather than fundamental value.
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