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Why is Shiba Inu Down Double Digits in 24 Hours? -Breaking

by Mike Robinson

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Why are Shiba Inu’s Double Digits Down in Just 24 Hours

CoinMarketCap.com reports that the popular dog meme coin has experienced a drop in price of almost 15% within 24 hours. Originally shilled as a “ killer” when it launched in August 2020, the $SHIB token price soared more than 40% in 48 hours when Coinbase (NASDAQ:) announced that it would list the dog-themed coin in September 2021.

Courtesy: CoinMarketCap.com, Shiba Inu, November 4, 2021

While there’s no specific trigger event for this chart drop that pushed Shiba Inu out of the top-10 crypto projects ranked by market cap, Shiba Inu has a serious centralization issue. Its trading page shows that nearly 70% of Shiba’s total circulating supply is consolidated in 10 wallets.

No one is sure if these wallets belong to different investors or just one person. Whale manipulation appears to be a possibility due to hyperconcentration of the circulating supply.

The owner of the biggest Shiba Inu wallet deposited 40 trillion $SHIB tokens valued at $2.7 billion to four separate wallet addresses yesterday. The wallet movements could indicate staged divestments. Needless to mention, even a tiny fraction of the 40 trillion tokens that are being flung into the market could dilute the supply and lower the cost per unit. To avoid possible wipeout, retail investors might take preventive measures and exit the market within 24 hours.

The holders of this project must be alert and continue their research in order to avoid any rekt.

To The Flipside

  • Even though Shiba developers have said they want to launch a DEX – which is a differentiator for this meme coin and suggests it’s more than a punchline – the only real value this coin offers is the network effect of its community. But that’s usually not enough to sustain long-term gains and growth.
  • Without strong fundamentals, articulated use case, and a clear development roadmap – this is a highly speculative investment.

Why you should care

Hype coins tend to follow a “mob-type” mentality and FOMO investors. Do your own research and don’t follow the crowd when it comes to crypto investing.

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