Shiba Inu Investor Transfers Tokens to Exchanges, Possibly Foreshadowing Price Drop
A crypto wallet holding a large amount of shiba inu (SHIB) tokens is moving funds to exchanges, with historical data suggesting a decline in prices in the short term if the holder were to sell the tokens.
- Wallet 0xd6 moved over 182 billion shiba inu tokens to crypto exchanges Gemini and Crypto.com in Asian morning hours on Monday, data cited by analytics firm Lookonchain shows.
- Three months ago, the same wallet moved more than 200 billion SHIB to Crypto.com, selling them for U.S. dollars. The market price fell 7% at the time.
- Tracking the movement of tokens from wallets that hold a significant amount of supply can serve as an indicator of price activity. If a large number of are sold, the price might decline as greater supply is available to the market. If, however, the tokens are moved to related decentralized finance (DeFi) applications, prices may not drop immediately.
- Etherscan data shows the wallet 0xd6 holds over 3.1 trillion shiba inu tokens, valued at almost $40 million at current prices. This is slightly over 0.3% of the total shiba inu token supply.
- Lookonchain said the wallet acquired shiba inu tokens in August 2020 with an initial investment of 10 ether, or just over $3,000 at the time.