While more than 500 million SHIBs are expected to be burned; Shiba Inu (SHIB) whales continued to stockpile the asset in hopes of a speedy recovery in the future.
Shiba Inu whale seizes billions of tokens as SHIB recovers
After a slight recovery of up to 5 percent in the price of SHIB today, an anonymous whale has seized 271 billion SHIB, valued at more than $6 million. This wasn’t the first major Shiba Inu purchase in recent days, as billions of tokens were purchased by the top 500 Ethereum wallets recently.
As a result of these ongoing acquisitions, the total USD value of the Shiba Inu holdings, its main competitor, was at some point. FTX Token (FTT) once again, it has become the largest asset on the Ethereum network. However, due to unfavorable price performance in the market, SHIB has lost its supremacy and ranks second at the time of writing.
Why do whales buy Shiba Inu?
While the average investor would likely avoid buying or even trading the asset when the market is volatile, whales and big wallet holders take a different view and are likely to hoard the asset rather than open new positions.
Despite the recent 35% drop in SHIB profitability, IntoTheBlock analytics platform says whales are still profiting from SHIB as the token’s price was nearly 75 percent below its all-time high in October.
In addition, according to the WhaleStats monitoring service, the largest Ethereum addresses that purchase additional Shiba Inu tokens already hold a certain number of tokens and are simply averaging down. averaging downis an investment strategy in which a coin holder purchases additional coins from an already initiated investment after the price drops. The result of these subsequent purchases is a decrease in the average price at which the investor bought the coin.
As a result of this strategy, investors can profit from every short and long-term jump in the market. As assets like the Shiba Inu are trending up hundreds if not thousands of percent at some points, whales prefer to hold it rather than actively trading it or speculating in the market.
Who qualifies as a whale?
WhaleStats whale watching service generally considers the top 100 wallets on the Ethereum network to be “whales”, as these investors often have different cryptocurrencies worth more than $400 million in their wallet. These investors do not include wallets associated with centralized or decentralized exchanges, escrow services, and OTC desks.
The top five on WhaleStats’ Ethereum rich list have more than $45 billion in cryptocurrencies and non-fungible tokens in their wallets.
Nearly 600 million SHIB ready to burn
Twitter account @shib_superstore announced that it has purchased a staggering 595,729,782 tokens of SHIB to remove it from circulation during a Shiba Inu burning event scheduled to take place today. The value of this purchase in fiat currency corresponds to $13,356.
The team behind this Twitter account, which represents Travis Johnson’s SHIB burning games, emphasized that SHIB is purchased with profits from ads in some of its mobile games.
Officially purchased tomorrow burn!
595,729,782 coins!
Keep in mind 99% of this burn was done through Bricks Buster and Candy Trips
Keep hitting that #1levelchallengekeep promoting, keep visiting the website, and keep being awesome!https://t.co/d0goxr6sys pic.twitter.com/xiyWAY8KST
— SHIB Super Store (@shib_superstore) March 16, 2022
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.