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Shiba Inu (SHIB), a Floki-themed meme coin that is one of the best-performing assets of 2021, has been under relentless selling pressure over the past few days due to the confluence of two major developments.
Remember the guy who turned his $8K $SHIB Investment into $5.7 Billion?
Well, he recently moved 40+ trillion of his #SHIB holdings to new four new wallets.
If he decided to sell these bags, SHIB would plummet -99.99% to zero. Oof. pic.twitter.com/HqrWw57nr2
— Jacob Oracle (@JacobOracle) November 3, 2021
Some people are interpreting this development as an indication of an incoming liquidation wave. However, this narrative has sizable holes. First, the Shiba Inu project currently does not have enough liquidity to support liquidation of this magnitude. Consequently, if the whale investor were to begin liquidating his mammoth SHIB stake, the entire holding would very rapidly become worthless, thereby precluding the rationale behind this possible move. Second, whale investors often divide their holdings between a number of wallets for risk-minimization purposes. The old adage to not place all of one’s eggs in a single basket holds doubly true in the crypto sphere. Therefore, we believe that such liquidation fears are largely unwarranted at this stage.
Another factor that is acting as a dampener on Shiba Inu’s SHIB coin is the delay in its listing approval on the Kraken Exchange. To wit, the exchange had committed to listing the coin the very “next day” of securing at least 2,000 likes from the Shiba Inu community. The tweet managed to garner over 80,000 likes.
👇 👇 👇
💬 🔁 ♥️
— Kraken Exchange (@krakenfx) November 1, 2021
However, Kraken then disappointed Shiba Inu investors when it indicated that the listing would not be spontaneous, with the exchange only committing to start the “listing review process”.
🐙♥️🐶 #SHIBArmy we’ve heard you loud & clear!
Community is an important part of our considerations for all listings, and you have clearly shown your support.
There’s more work for us to do as we move through our listing review process.
— Kraken Exchange (@krakenfx) November 2, 2021
We’ve continued to note that there is an increasing likelihood for the Shiba Inu coin to list on the popular retail brokerage platform, Robinhood. Similarly, we believe that the SHIB coin will eventually be listed on the Kraken Exchange once the platform concludes the due process.
Given that Shiba Inu’s SHIB coin is still up over 68 million percent year-to-date, the current weakness might simply be a case of a well-deserved breather before the resumption of the next bullish leg.
Unlike the majority of other meme coins, Shiba Inu does offer substantially more utility in the form of a native peer-to-peer crypto exchange, dubbed ShibaSwap. The exchange allows users to “dig” or provide liquidity, “bury” or stake coins, and “fetch” or swap coins from Uniswap or SushiSwap. Moreover, the project also offers 10,000 unique NFTs called Shiboshis, pixelated Shiba Inu dog cartoons with varying characteristics and rarity. Whenever the name of these NFTs is changed from their generic initial codes, SHIB coins worth $100 are burnt. The entire SHIB community also continues to willingly burn some of the circulating SHIB supply in order to create deflationary conditions.