Shiba Inu (SHIB) Coin Under Relentless Selling Pressure Due To Overhyped Whale Liquidation Fears as Well as Kraken Exchange Listing Delays

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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.

First, as per the tweet by @JacobOracle, a Shiba Inu whale investor recently moved over 40 trillion SHIB coins to four new wallets:

Shiba Inu’s Push Toward Blockchain Gaming Will Entail a Sizable SHIB Coin Supply Burn, Paving the Way for a Sustainable Price Ramp-up

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.

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”.

Shiba Inu’s (SHIB) Lead Developer Tweets an Egg Emoji, Spurring Speculation Regarding a Partnership With Computer Hardware Retailer Newegg

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.

Source: https://coinmarketcap.com/currencies/shiba-inu/

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.

The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.
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