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Incoming Danger for Shibinu HODLRS
Investing in Crypto currency is a risky business especially if you're coming in late to a project and buying the Hype, which is where a lot of people get caught out and feel the full wrath as those who bought in early quite often at relatively reduced rates start dumping. It has been the common strategy for many investors over the years and the story of how many got rich. Buying in at the right time which is often the launch of a project which than jettison people to riches.
But things are a lot different today than they were in previous years of crypto with a lot more research needing to be done in order to ensure the project you're investing in has the financial capabilities. Not only that but you need to ensure the token you're investing in isn't a scam coin which can be quite challenging especially if buying in early like what happened with Squid Game token.
Information Sharing
Blockchain technology is opensource and fully transparent and a few years into the industry a lot of tech savvy people spend a lot of time looking into data and watching over many blockchains to seek out movements which could be harmful.
A recent issue that has been raised is a large transfer of SHIB tokens being shifted to Binance to the value of $US16 Million or 1.8 Trillion Shib tokens. The move has been undertaken by Crypto.com another exchange which came under speculative fear of financial sustainability a few weeks ago.
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Further investigation identified that Crypto.com holds 58 Trillion SHIB tokens which equates to $US531 Million dollars which makes up 20% of it's total holdings. A large risk portfolio for the organisation given now that SHIB has not been making any major gains. The company has also been withdrawing 260 Million USDT and USDC From Binance and Circle.
The movement of SHIB to Binance may indicate the intention of Crypto.com to sell the token and with such a large holding this could potentially further drive down prices and cause a bank run on SHIB. A move at that level could potentially cause havoc amongst and already bucking crypto market.
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Cro Token
Another find is that Crypto.com holds a significant amount of it's own token called Cro coming to a total of 1.2 Billion tokens with an estimated value of $US80 Million and investors are being urged to monitor their portfolios if they currently hold this token as it might be about to get dumped on Binance.
image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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I don't see why anyone would hold for shitcoins for years, I see these are mere trades during the bull markets when everything pumps. The next question that arises is why the hell would has crypto.com bought that much?
I know right that is an extremely scary thing that a company owns so many. I was thinking maybe it was everyone dumping the Tokens on Crypto.com but then that would have just drained a pool. So they must have physical purchased these coins as part of their portfolio. Silly
Perhaps they also bought when the price was high
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Shiba and doge are decent liquid tokens to pay for things that are much faster than something like bitcoin. I don’t use mine but I think in the future it will be used as a medium of payment.
I don’t have faith in it as a token but a tool for payment.
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That's a lot of SHIB for crypto.com to hold. How can they have a meme coin as part of their reserves? With this information flowing on social media, 'dumbing mode' has just been initiated.
Thats exactly what I was thinking it is a major risk for the platform and its ability to sustain income. Wondering how much they lost out on because Shib is significantly lower now than it has been previously.
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SHIB is a meme token and I don't really own any. From what I see, it doesn't really have much use case and I would not be surprised to see someone dump SHIB during these hard times.
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If they tank Shiba I’m buying more! Lol
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