The crypto markets are engulfed in a cloud of uncertainty. The SEC has filed two suits against crypto heavyweights Binance and Coinbase. Amid the rollercoaster ride, a Shiba Inu (SHIB) whale has sent 4 trillion SHIB tokens from Shiba Staking to Binance. The value of the 4 trillion tokens is about $31.7 million.
The movement of assets from staking platforms into exchanges is usually worrying. This is because it increases the chances of the tokens being dumped in the market. If the whale decides to sell the tokens, it could have dire consequences for SHIB’s price.
The whale’s transfer to Binance comes amid the exchange announcing that it will not process U.S. payments starting June 13, 2023. Therefore, it is possible that the whale might exchange its Shiba Inu (SHIB) holdings before said date, or worst case scenario, dump them altogether.
Will Shiba Inu prices suffer?
If 4 trillion SHIB tokens are dumped on the market, then yes, the asset’s price will likely take a beating. Whale holdings are one of the biggest drawbacks of SHIB. According to IntoTheBlock, 80% of all the SHIB in circulation is in the hands of large holders, aka whales. Whenever these whale wallets make a move, it tends to move the asset’s price along with it.
Moreover, 86% of Shiba Inu (SHIB) holders are currently sitting on losses. Hence, it is possible that the whale wallets are getting tired of their losses and want to sell out. Only a mere 11% of SHIB holders are currently in profit.
Shiba Inu (SHIB) has fallen by 6.8% over the last week. Moreover, the token is down by a whopping 90.79% from its all-time high of $0.00008616, attained in October 2021. SHIB is currently trading at levels last seen in late-December 2022. At press time, SHIB was trading at $0.00000794, down by 0.1% in the last 24 hours.