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Whale transactions, especially during the current troublesome and highly volatile crypto market phase, are among the most closely monitored movements in the crypto community because of their presumed impact on a token’s volatility. But a Shiba Inu Growth Breed member suggests that the Shib Army should take caution in interpreting these whale transactions and whether they really impact the price of the dog-themed altcoin.
Whale wallets in the cryptocurrency industry is a term given to individuals or entities that hold massive amounts of crypto, or at least between 1,000 and 1 million ETH. These wallets are power holders because their movements can influence a cryptocurrency’s price.
Shiba Inu Growth Breed member Milkshake, who goes by the Twitter handle @@shibainuart, suggested Tuesday that the community should take caution in interpreting whales’ movements, especially in current market conditions. “If you see large transactions, or “whale transactions” without price impact, you may want to review what these really mean,” they tweeted.
Photo: With permission from @GossipShib Twitter
“Most of the time, it could be an exchange just transferring funds to alternative exchange wallets, or selling their assets to another platform or exchange,” Milkshake said. While not directly stating the obvious, the Growth Breed member noted that some are just trying to salvage what they have, particularly those in platforms closing down.
“Especially in such market conditions, even platforms or exchanges that are falling or closing, try to secure sales of their current assets to other active exchanges in order to rescue as much as they can, which could also show as ‘whale movements,’ yet they are transfers,” they said.
Milkshake’s statement came following reports about a whale making the largest transaction in Shiba Inu history when they purchased 20 trillion SHIB with a value of around $210 million, making SHIB the most held non-stablecoin as per WhaleStats.
Shiba Inu has shown impressive performance in the current bear market. As of 10:31 p.m. ET on Tuesday, SHIB was trading down 4.48% at $0.00001023 with a 24-hour volume of $413,203,802, based on data from CoinMarketCap.
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