Traders and investors are disturbed and feeling apprehensive following the transfer of $2.3 billion worth of Shiba Inu coins to four different wallets by a whale on Tuesday.
At press time, the price of the meme coin tagged “doge killer” was trading at $0.00005444, however, the coin has dropped by 14.55 percent in the last 24 trading hours.
On Tuesday, the whale made a transaction of 10,000,000,100,000 SHIB coins to four different wallets, each transaction worth $586 million — summing up to a total of $2.3 billion.
Shiba community had assumed the owner of the inactive wallet might have lost its key or forgotten the wallet when it was first identified.
On Wednesday, a social media handle @devchart tweeted, “2021 Remember when everyone was wondering if the guy who turned 8k$ into 5 billion actually lost access to his wallet? Turns out he didn’t and just started moving some of his $SHIB”.
However, the whole situation has led to fear in the Shiba Inu community, holders are speculating a potential sell-off by the whale, a move that could have an adverse effect on the price level of SHIB. The liquidation of such volume could lead to massive price fall.
“If he decided to sell these bags, SHIB would plummet -99.99% to zero,” tweeted financial analyst Jacob Oracle.
According to CoinMarketCap, the price of Shiba has plunged by 32.94 percent in the last seven days to $29.89 billion or to the 11th spot on the ranking.
Another Twitter handle @unusual_whales said, “He is awake. The best trader of all time is alive. This wallet bought $8,000 of $SHIB last August. It’s now worth $5.7 billion. I repeat – $5.7 billion in 400 days. He owns 16% of the marketcap. He has sent $2.2 billion to four different wallets yesterday.”
Data has shown that the top 10 wallets in the Shiba community hold almost 72 percent of the entire Shiba Inu coins in circulation. Meaning, the ownership of the meme coin is concentrated among top holders.
The whale that moved $2.3 billion of Shiba Inu currently holds over $1.8 million worth of SHIB in its old wallet.