Data shows Shiba Inu worth about $270 million has exited the wallets of Crypto.com, something that may turn out to be bullish for the meme coin.
Massive Amount Of Shiba Inu Has Exited Crypto.com
As per data from the cryptocurrency transaction tracker service Whale Alert, six large SHIB transfers have been spotted on the Ethereum blockchain during the last few hours.
Strangely, all these transactions saw the same amount of coins move across the network: 4,156,580,418,372 SHIB. These transfers also occurred close to each other, but a minor time gap nonetheless existed between them.
Although the transactions may have each involved an equal number of coins, their USD values (at the time they were executed) weren’t the same because of this small time difference, during which the SHIB price saw fluctuations.
On average, these transfers saw the movement of SHIB worth about $45 million, which is quite a significant amount. There are only two entities in the market that can make transactions so large: whales and exchanges.
The former’s movements can be something to watch out for, as they may have a noticeable influence on the market. The latter, however, often have no effect on the price as they are usually internal exchange wallet transactions.
Now, here are some additional details about the first large SHIB transfer that took place today, which may reveal more about its purpose:
This SHIB transfer only needed a fee of $1.29 to go through on the Ethereum network | Source: Whale Alert
As you can see above, the sending address in the case of this Shiba Inu transaction was a wallet attached to the cryptocurrency exchange Crypto.com, while the receiving address was an unknown address.
Unknown addresses are generally addresses that are unaffiliated with any known centralized platform, meaning that they are likely to be investors’ personal wallets.
Similar to this, the other five transactions observed today also had coins move between Crypto.com and an unknown address. In fact, the sending and receiving wallets involved in all six of the transfers were the exact same, suggesting that the same entity was behind them all.
Such transactions, where coins move from an exchange to an unknown address, are called “exchange outflows.” Usually, investors make outflows when they want to hold onto their SHIB stacks for an extended period of time.
This suggests that if a whale was truly behind this transfer, then the price of Shiba Inu could feel a bullish effect from this as it would imply strong accumulation from the holder.
However, since the total sum involved here is about $270 million and the amount moved in such a short duration of time, the transactions being made by Crypto.com itself are also a valid possibility.
In the scenario that these transfers were made by the exchange itself, SHIB would either see no consequences from this or a bearish effect, depending on whether the platform is offloading these coins or not.
At the time of writing, Shiba Inu is trading around $0.00001076, up 2% in the last week.
SHIB has declined during the past day | Source: SHIBUSD on TradingView
Featured image from Ferhat Deniz Fors on Unsplash.com, chart from TradingView.com