Shiba Inu ($SHIB) has recently been thrust into the spotlight thanks to on-chain research by Bubble Maps. A mysterious whale, identified as “0x1406,” has been found to hold 10% of the total $SHIB supply across multiple wallets, valued at an estimated $2.5 billion. This discovery raises significant questions about market dynamics, token decentralization, and the potential risks posed by such concentrated holdings.
The research, brought to light by on-chain analytics platform Bubble Maps, dives deep into the whale’s wallet activity and meticulously uncovers the journey of this massive $SHIB holder.
1/ We found a Shiba Inu whale holding $2.5 billion in $SHIB 🤯
He owns 10% of the supply across 150 addresses
Here’s his story 🧵 ↓ pic.twitter.com/nH1AfDm3Pw
— Bubblemaps (@bubblemaps) November 19, 2024
What the Research Reveals
According to Bubble Maps, 0x1406 began accumulating Shiba Inu tokens during its infancy, between August and October 2020. Using just 38 ETH (around $10,000 at the time), the whale acquired a staggering 103 trillion $SHIB, or 10% of the total token supply. This trade, now worth $2.5 billion, represents one of the most profitable crypto investments ever recorded, with a 250,000x return.
The whale initially stored all 103 trillion tokens in a single wallet. However, as Shiba Inu’s value surged and its popularity exploded in late 2021, the whale executed a calculated strategy to redistribute their holdings. First, the tokens were split into 14 separate wallets in November 2021, likely for risk management and operational security.
By 2024, further wallet activity was observed. Using Bubble Maps’ Magic Nodes tool, researchers uncovered that these holdings were further fragmented into ~150 addresses, effectively making the whale’s movements harder to track. Despite the redistribution, the cluster of wallets remains identifiable and holds the same 10% of $SHIB supply.
Bubble Maps’ visuals provided concrete proof of these wallet connections, offering a clear view of how the tokens moved and how the whale maintained control over their vast holdings. These findings are a testament to the power of blockchain transparency, allowing anyone to trace funds with the right tools.
Implications for Shiba Inu and the Market
The revelation of a whale controlling 10% of $SHIB supply raises critical concerns about market stability. If the whale where to sell even a small portion, it could trigger a price crash harming retail investors who rely on Shiba Inu’s community-driven appeal.
Real-world examples highlight these risks. The Terra ($LUNA) collapse in 2022 was worsened by large holders dumping during the crisis, amplifying market panic. Similarly, Dogecoin faced criticism when one wallet was revealed to hold 28% of its total supply, sparking fears of potential manipulation.
Despite the risks, the whale’s decision to hold rather than sell suggests long-term confidence in Shiba Inu’s growth. While this patience may reassure some investors, it also underscores the ecosystem’s reliance on greater decentralization to align with its community-driven ethos. Concentrated ownership remains a double-edged sword, balancing stability with potential unpredictability.
Source: https://www.cryptonewsz.com/shiba-inu-whale-holding-10-percent-shib/