Data from whalestats.com show that the controversial Shiba Inu meme token is the most significant holder of the top 1,000 ETH portfolios, excluding Ethereum.
After a tremendous run in October, in which SHIB achieved gains of more than 1,000% from its peak price of $0.00008846, things cooled down significantly.
Shiba Inu’s price is currently stuck in a downtrend with $0.00004700 providing support, having rebounded from this price level on three occasions since the peak.
However, despite the demonstration of “dogecoin killing” cases throughout October. For example, surpassing DOGE in the market capitalization rating on several occasions and a consistently higher 24-hour trading volume thus far, SHIB has failed to maintain that shape.
What are ETH whales holding?
According to whalestats.com, Shiba Inu makes up the most significant share of the top 1,000 ETH portfolios excluding Ethereum, accounting for just over 20% with $2.4 billion.
All other holdings are significantly smaller than SHIB. The second largest is crypto.com’s CRO token, representing 6% of total $645 million holdings. The CRO has been in great shape lately, growing 72% in the last week, hitting an all-time high of $0.59 today.
The third place is the BEST token from Bitpanda, which reaches 5% of the total participation, which is equivalent to US$ 593 million.
Should you fear Shiba Inu whales?
Digging deeper, analysis of the top 100 Shiba Inu portfolios reveals some interesting statistics.
The average value of SHIB in the top 100 portfolios is 43% to $119 million. This is despite the declining volume and net flow. In addition, the top 100 portfolios control 25% of the total inventory, of which only ten portfolios are active.
The danger of a high concentration of whales boils down to market manipulation. Sudden market movements are often related to liquidity – specifically, market depth and spreads. Whales, which control a high percentage of tokens, can temporarily drain liquidity and increase market volatility.
This practice is done for the benefit of whales at the expense of all other token holders.
After the beginning of the SHIB deceleration at the beginning of this month, the crypto investor aaron brown attacked Shiba Inu, accusing the project of lacking solid foundations. He added that when combined with a high concentration of whales, non-whales should be careful.
But for cryptography with no underlying economy, whose value is determined only by speculation, concentrated ownership suggests a fraudulent game.