A wallet belonging to a whale has sold a total of 620 billion in the past three weeks. According to the tweet by @shibaplay_, an unknown crypto investor has transferred an outstanding 160 billion Shiba Inu.
Etherescan shows that in the last 20 days, the wallet has sold up to 623 cardinal meme coins. Additionally, the whale wallet bought double as much SHIB, a stirring trillion coins.
Selling 623 Cardinal SHIB Successful Large Lumps
According to info from Etherscan, wallet 0xcffad3200574698b78f32232aa9d63eabd290703, acquired 1,000,000,000,000,000 Shiba Inu 21 days ago.
The purchase was through the Crypto.com exchange. After the acquisition, he split the canine crypto amount into chunks, containing 150-160 Shiba.
In addition, thirty-eight days ago, the same wallet purchased 1 trillion SHIB and sold similarly.
The State of Memecoins in the Bear Market
Investors and traders expect digital assets with solid fundamentals and use cases to fare well during a bear market. On the other hand, those with limited utility and highly inflative tokenomics often face a hard time.
Memecoins invariably have little or no utility at all, and have built-in
Transaction taxes and a high rate of inflation. Thus, they accumulate sell pressure exceeding the buying pressure in bear markets, which drives the price down.
However, despite the bear market, some meme coins show positive results, giving many investors some positive returns.
Despite their increased volatility, meme coins continue to attract investors. For instance, the SHIB token has lost around 85% of its value from its all-time high of $0.000084 in October 2021. The loss contributes to an adjacent loss of the investor’s capital.
The Situation with Shiba Inu
In a few days, Shiba Inu attracted massive whale attention. Due to the ongoing bear market in the cryptocurrency market, many meme coins have suffered. The whole crypto market was in the red.
As a result, this incident impacts Shiba Inu regarding the price. However, there were some development priorities by the SHIB network, which the community seemed to fully back. An example is the development of the Shiba Inu Eternity game, which is yet to be available to users. Hence, a sudden rise in SHIB holders.
Besides, whales occasionally acquire, discard, and move, creating a noticeable trend. It is the same with the anonymous whale, moving a sizable chunk of SHIB across wallets in different transactions. It seems like he was repeating the acquisition and disposal technique, as the history of the transactions states.
The wallet user has been using the volatile market over the past few days to collect as much profit with the large volume of trades.
Is Shiba Inu Surviving the Bear Market?
At the time of writing, SHIB is trading at $0.000012 as per data from CoinMarketCap, down by 7.15% in the last 24 hours. Making money on meme coins is technically possible but not always a sure thing.
Memecoins are subject to more volatile factors than mainstream cryptos like Bitcoin and Ethereum. The price of a meme coin can drop overnight, serving more risk to investors.