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The Shiba Inu (SHIB) is the new meme token in town and has soared in popularity in a short period. This prompted big-time investors to purchase the new crypto in huge numbers as these raised concerns regarding high ownership concentration.
Shiba Inu popularity
Shiba Inu has surpassed fellow meme token Dogecoin (DOGE) as its market value skyrocketed to over $51 billion over the past week, not to mention during that time, this landed the token among the top 10 cryptocurrencies. However, its hype has gone sluggish these past few days as its market value plunged significantly by over 30 percent to about $29 billion.
Creation of SHIB whales
The hype over SHIB has created whales and this raised some concerns among members of the crypto community. The reason behind it is that these Shiba Inu owners’ wallets may well seem to control most of the SHIB coins in existence. Further, there’s this disturbing news for those who purchased the meme token and are said to be “sitting on paper gains of a lifetime” being one of these SHIB whales has been putting the coins into action as these are being transferred into various wallets. Such activity gave some crypto folks the impression that this fellow is likely to sell.
On what is described as “dog-coin drama,” it is one of the most recent cases that albeit the transparency within the cryptocurrency market where everything is put into record on the blockchain, it’s the anonymity of the people involved including the Shiba Inu creators that led to a so-called “house-of-mirrors effect” due to the fact that no one has the slightest idea as to who is doing what.
Crypto investor Aaron Brown, who’s also a Bloomberg contributor said that legitimate crypto according to him is fully transparent about its code, transactions, and the likes. He highlighted, however, that it is “usually opaque about matching transactions to individuals.”
Further, reports suggest that Shiba Inu ownership is pretty much concentrated. It was learned that a total of 872,382 are in possession of the meme token, though the attention is at the top 10 wallets that are said to hold almost 72 percent of SHIB.
If CoinMarketCap’s data is anything to go by, the top dog of them all owns 41 percent of the coins that translates to $21 billion. Next to it is at around seven percent that is worth $2.5 billion.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
