An insider investor bought around $3,400 worth of Shiba Inu (SHIBA) tokens back in August last year, 15 months before its big rally. Now they are worth an absolutely massive $1.5 billion, making that person an effective billionaire. The meme coin has risen a whopping 94,000,000% during this short time.
Shiba Inu coin is named after the breed of the dog that appears in the doge memes. The cryptocurrency started last year as a competition to Dogecoin that was only beginning to rise strongly. The SHIBA team correctly predicted the rise of the meme coin sector and came up with their own, even if it was apparently just a rip-off of Dogecoin itself, the first meme coin in the business.
Back in August, an unknown crypto wallet address received SHIBA on various different instances. There were 44 purchases made during this time and the biggest amount was worth around $3200. Now, the wallet’s total assets are around 70.2 million SHIBA tokens with a worth of well above $5 billion overall. With the total market capitalization being just $39 billion at the moment, this single wallet address holds around 12.8% of the entire supply of the digital currency. If he/she intends to sell, the whole Shiba Inu market will likely collapse. Even some crypto moving from this address will be taken as signs of liquidation and the market will respond accordingly.
There is also the question of whether the SHIBA market has that kind of liquidity to handle this big coin dump in the near future. It is important because this sizable 12.8% of the total supply has been off the market for most of the coin’s history. Combined with other HODLers and founders’ deposits, the off the shelf SHIBA tokens compose a major chunk of the coin’s supply. So, the market is expected to collapse in case this address decides to sell off even a small amount of these tokens. So, either he can keep his coins and save the network or dump his coins and cause irreparable damage to it.
The move is similar to Satoshi Nakamoto’s 1 million Bitcoin that he mined during the first year of the coin’s existence. They have been locked in place ever since and are expected to remain there. Liquidating them is not going to be easy and will disrupt the market too much. Same is the case with this SHIBA hodler but BTC’s market is way bigger and can potentially absorb the new supply of coins, but same may not be the case for the SHIBA hodler at all.
Image Source: pixabay.com
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