Cryptocurrencies have usually been subject to great volatility. Whales have large effects on the prices. A small change in the market sentiment or with a considerable amount of coin dump the market comes down by several points. This volatility shows the degree to which sentiments affect the crypto market. Recently, a Shiba Inu (a meme coin) which is known for its volatility and used by whales to earn quick profits. The coin made headlines recently due to some movements by a whale. The investor, with wallet Oxd6 moved about 182 billion SHIB to crypto exchanges crypto.com and Gemini.
The moved sparked a panic, in the prediction of a market fall. However, the prices were largely unaffected by the movement. Unlike last time, three months before. The same wallet transferred 200 billion SHIB to the crypto exchanges, and the markets fell by 7%. What makes for the panic news is that the wallet owns about 3.1 trillion Shiba valued at $40 million. Which makes 0.3% of the tokens in the market. These were purchased in 2020 by the investor with 10 ether or $3000 at that time.
As mentioned by lookonchain tweets, shows the market fall earlier. When the whale, dumped 200 billion tokens, worth about $1.67 million. It further adds he made about $7 million or 1967 ethers by buying and selling. That is with an initial investment of 10 ethers.
The transfer of tokens from wallets that hold a large quantity of supply can be used to predict price volatility. If a high number of tokens are sold, the market price may fall as more supply becomes accessible. However, if the tokens are transferred to relevant decentralized-finance (DeFi) applications, prices may not fall instantly. This might be the reason the price of SHIB has not fallen despite a dump of 182 billion. However, SHIB has performed relatively better in 2023, with a 60% spike in value over the last 60 days. With Shibarium expected to launch soon, the community expects the price to soar.
