Shiba Inu is the up and rising cryptocurrency these days and it is named after a breed of dog.
The total market capitalization of Shiba Inu rose to more than $51 billion earlier this month. This increase in value was a leap forward toward becoming one of the top 10 cryptocurrencies in existence, passing Dogecoin. This is while the coin lacks any proper fundamental and economical reason for thriving.
The fluctuations in the market have cooled down to come level, by lowering the total market value by 31% to around $35 billion. This is while the majority of the capital is in hands of a few whales in the market that own up to 72% of existing value. These whales control most of the tokens in the market and have a great influence on the market outcome. With such great influence in the hands of a few, the miner traders remain extremely vulnerable to changes in the market.
Earlier this week, one of the whales moved a considerable number of coins to a different wallet, raising speculations that the holder might want to sell. This news concerning the miner holders that holding Shiba Inu might not be safe anymore.
A similar incident happened in the case of dog-coin. Despite high transparency in a market and trading, the anonymity of the traders leads to a house-of-mirrors effect. The anonymity of traders and not knowing exactly who is doing what was the main reason for the house-of-mirrors effect.
Aaron Brown, a crypto investor, and a Bloomberg Opinion Writer stated that in legitimate crypto trading, as opposed to the banking system, information on transactions, code and traders are fully transparent. While in the banking system anything apart from personal identification is held opaque and in conventionality.
in the Shiba Inu market, the ownership is concentrated among a few. according to the data, the total cap of this coin is around $35 billion being held by around 872,382 wallets, the top 10 investors own roughly 72% of the coin.
The data shows that the biggest wallet holds around 41%of the total cap. This amount is equivalent to around $21 billion at the peak. The second-largest whale in the market currently owns around 7% of the total cap which is about $2.5 billion at current prices.
The second-largest whale has been transferring the token out of his wallet at a fast rate.
It is such a lack of regulatory policies and market surveillance that leaves meme coins like Shiba Inu vulnerable to suspicion when such large-scale transferring happens. Even the surge in value and prices do not mitigate the suspicions.