- Shiba Inu launches highly anticipated Shibarium blockchain amidst technical glitches
- A SHIB whale raised eyebrows after executing a strategic resell of their SHIB holdings
The highly anticipated launch of Shiba Inu’s new decentralized Ethereum Layer 2 (L2) blockchain has been marred by a series of whale dump activities in the last week.
Despite garnering significant attention and attracting over 21 million users during its beta test phase, SHIB’s Shibarium launch failed to create a positive impact on Shiba Inu’s price trajectory. The community believes technical glitches are the main reasons behind the lackluster performance. However, it has now come to light that aggressive whale reselling is responsible for the downward pressure on prices.
One particular instance has raised eyebrows in the cryptocurrency community. A prominent whale executed a strategic move by selling off substantial amounts of $BONE and $SHIB tokens, only to reinvest in a different token. The whale’s actions included selling 979,469 $BONE for 787 $ETH (equivalent to $1.44 million) at an average price of $1.47 over the course of three days. Following this, the whale promptly deposited the entire holding of 143 billion $SHIB (worth $1.32 million) Binance after the Shibarium upgrade stopped producing blocks.
A whale sold all $BONE and $SHIB, then bought 1.07T $PEPE ($1.28M)!
The whale sold all 979,469 $BONE for 787 $ETH($1.44M) at $1.47 in the past 3 days.
Then deposited all 143B $SHIB($1.32M) to #Binance after #Shibarium stopped producing blocks.https://t.co/XILSObi0UC pic.twitter.com/vwv6puUYwo
— Lookonchain (@lookonchain) August 17, 2023
Speculation runs rampant regarding the motivations driving these dramatic sell-offs. One theory suggests that the whale’s intent was to capitalize on potentially larger profits by reallocating assets. In addition, an estimated $1.7 million worth of ETH and approximately $762,000 worth of BONE also remain stuck within the Shibarium bridge contract. The unsettling aspect is the uncertainty surrounding whether these funds will be available or they are permanently lost.
As a result of this incident, the Shiba Inu team was forced to take decisive action by halting all operations on the Shibarium platform. Reports have emerged indicating that the blockchain’s transaction system lies in a state of complete stagnation, with numerous users voicing complaints about not receiving their tokens.
Despite anticipating a price explosion, Shiba Inu (SHIB) lost approximately 9% of its price value in the first 24 hours after launching the new blockchain. See the chart below:
Source: TradingView
The implications of this predicament are far-reaching, as a substantial amount of capital remains untouched within the blockchain, contributing to an overal negative sentiment around the new mainnet.
The sudden downturn has prompted industry observers to ponder the resilience of Shiba Inu’s market valuation amidst these challenges. Meanwhile, the community is eagerly awaiting updates from the project’s development team, hoping for a swift resolution that can restore faith in the potential of the new L2 blockchain.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
