- Shiba Inu’s native cryptocurrency, SHIB, experienced a price slump in the early hours of Monday, May 13, due to increased investor interest.
- A SHIB whale transferred a whopping 100 billion SHIB tokens to Coinbase, one of the leading centralized exchanges (CEX), early Monday morning.
- Despite the initial price slump, the memecoin managed to recover, gaining 6.4% a few hours later.
SHIB sees a price slump following a massive transfer of 100 billion tokens to Coinbase. Despite the initial dip, the memecoin recovers, marking a 6.4% gain later in the day.
SHIB Whale’s Massive Token Transfer
The significant transfer of 100 billion SHIB tokens to Coinbase by a SHIB whale sparked interest among the memecoin’s community members. This action triggered speculations over the short-term impact of the transaction and added fuel to the already-existing bearish sentiment in the Shiba Inu community.
Implications of the Transfer
While the identified SHIB transfer to Coinbase does not necessarily indicate a sell transaction, the speculations around it stem from the current plunge in SHIB’s price. Crypto users often perceive transferring digital assets to CEXs as a sign that the holder may be planning to sell. They see it as an attempt to introduce the assets into an ecosystem where they can be exchanged easily for fiat or other crypto assets, unlike holding them in isolated portfolios.
Financial Impact of the Transfer
According to available data, the whale purchased the said SHIB tokens at an average price of $0.00002408. Selling them at the current price would amount to a loss of about $178,000. The data also revealed that the wallet behind the SHIB transfer did not hold any other token, showing that all of its past transfers revolved around SHIB.
SHIB’s Price Recovery
The transaction led to a 4% drop in SHIB’s price on Monday morning. However, the flagship memecoin has recovered from the slump and pushed towards higher levels. Data from TradingView showed that SHIB traded for $0.00002370 at the time of writing, reflecting a 6.4% profit for the trading day.
Conclusion
In conclusion, despite the initial price slump following the massive token transfer, SHIB managed to recover, marking a 6.4% gain later in the day. This event underscores the volatility and unpredictability of the crypto market, particularly for memecoins like SHIB.
