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A Crypto Whale Bought $1.13 Billion Worth Of 20 Trillion Shiba Inu Tokens

A block reported on Etherscan on Sunday, Nov. 7 shows a single transaction for 20,000,000,000,000 – that’s trillion with a “T” – Shiba Inu tokens worth more than $1.13 billion in the United States. According to the screenshot below, the purchase was made at crypto.com.

It’s unclear what effect such a large shift would have on the Shiba market. According to CoinMarketCap.com, the price per token has dropped 1.5 percent in the last 24 hours, indicating a near-neutral impact for the time being.

However, because Shiba’s valuation is driven primarily by the sentiment of its active community rather than fundamentals or technical analysis – as is the case with most meme-type coins – this billion-dollar purchase could be interpreted as a positive signal for those on the fence to join the Shiba pack. On the other hand, this transaction could have a negative impact if it is part of a wider market manipulation scheme.

It’s no surprise that over 66 percent of the Shiba Inu project’s circulating supply is currently in the hands of 10 or fewer holders. Because whales may coordinate the purchasing and selling of the meme asset at their whim, such highly concentrated ownership is a huge warning flag for most crypto investors. Such large swings in valuations tend to liquidate both long and short retail traders on margin, while whales profit.

Regardless, Shiba’s support and favourable sentiment appear to be unaffected by these threats. A Change.org petition begun in May of this year to encourage digital asset trading firm Robinhood to begin listing Shiba had more than 500,000 signatures as of Sunday, Nov. 7 – the halfway mark of its 1,000,000 signature objective.