SHIB Investors Flee to Bitnance After DAO Scandal

Shiba Inu investors appear to be flocking toward Bitnance, a new project on presale that promises to become Binance’s ‘go-to’ digital store of value asset.

Over the past 20 days, $SHIB has been on a downward trend, losing over 14% of its value. On a monthly period, however, the memecoin has a modest value increase of 0.82%. 

Since its incredible March surge, Shiba Inu has struggled to maintain its momentum and has been on a losing record since. Even recent reports from IntoTheBlock regarding an increase in whale activity in the network weren’t enough to significantly reverse the bearish trend.

Adding to Shiba Inu’s challenges, a recent incident within the Shiba Inu DAO has further shaken investor confidence. Nearly $100k worth of ETH – donated by fast food partner “Welly” to the DAO – have reportedly been stolen.

This occurred just after the community overwhelmingly voted to secure the funds in a new multi-signature wallet controlled by key developers. Despite this clear decision, the tokens were quickly moved through a series of addresses and ultimately sold off on centralized exchanges, raising concerns about the security and governance within the DAO.

This unsettling event has amplified doubts about Shiba Inu’s future, as the project faces not only market challenges but also internal issues that threaten its stability. Far from being the first time a Shiba Inu product has been tainted with controversy – investors are increasingly growing suspicious of the developers’ abilities.

Coincidentally, blockchain analysis reveals an increasingly larger number of $SHIB holders moving towards a new project on the Binance Smart Chain. 

SHIB Holders Buying Bitnance Presale

Recently, Bitnance – a digital store of value coming to the Binance Chain later this year – has been recording an impressive performance regarding token sales. Over the past month, the project more than doubled its total token sales.

Even more impressively, the presale has averaged over 5,000 tokens sold per day over the past week, growing much in part from crypto whales joining in. This performance, when accounting for the limited supply of the project could mean that the presale phase could end way earlier than its listing date scheduled for December 5th.

Interestingly enough, analysis from the presale address reveals a growing amount of SHIB holders joining the presale. While the reason for that is unclear, a comparison between the two projects shows how Bitnance has in many ways the direct opposite characteristics.

Why Shiba Inu Investors Are Moving to Bitnance in Droves?

Bitnance’s appeal to Shiba Inu holders lies primarily in its extreme scarcity. With only 10.5 million tokens to ever exist, Bitnance is over 56 million times scarcer than Shiba Inu, which has a staggering supply of 589 trillion tokens. This scarcity makes Bitnance an attractive option for investors seeking a digital store of value with built-in protection against inflation. 

In contrast, Shiba Inu has struggled with its enormous supply, leading to ongoing efforts to reduce the number of circulating tokens through the now-dull “huge burns.” promotional stunts. However, these burns have had limited success in sustaining long-term value, leaving many investors frustrated with the project’s inflationary pressures.

Bitnance, on the other hand, has focused its development on ensuring that its token remains deflationary from the start. The project has resisted inflationary mechanisms and designed its marketing strategy around the concept of scarcity rather than relying on token burns. 

This approach offers a compelling alternative for Shiba Inu holders looking for a more stable and potentially more valuable digital asset. As more $SHIB holders transition to Bitnance, the project’s ability to maintain and even increase its value could position it as a stronger contender in the digital asset space, particularly for those seeking a secure and reliable store of value.