I tracked the 6 trillion Shiba Inu whale’s movements

Shiba Inu whales pumped the SHIB price 42% in just three days this August 2022.

The news took the crypto space by storm – but also sparked debates about the role of Shiba Inu whales in pumping the SHIB price and later taking profits.

If the headlines are to be believed, any hype is good for Shiba Inu investors.

But just how altruistic are Shiba Inu whales?

Especially in an era where Terra Luna lost around $40 billion, and new cryptocurrencies like EverGrow specifically have anti-whale systems built in to avoid pump-and-dump schemes?

To get a better answer, I wanted to track the movements of the Shiba Inu whale who famously bought 6.178 trillion SHIB on September 30 last year. This Shiba Inu whale purchased a total of 6.5 trillion SHIB over a two-day period valued at $100 million – within a month, the price of Shiba Inu had pumped 1,010%.

Here's what I found out.

The 6 trillion Shiba Inu whale made at least $35 million

Ask most Shiba Inu investors about whales and they'll probably say the same thing: whales are great for pumping the price.

This statement is true.

But the reverse is also true: whales are fantastic for sending SHIB prices into freefall.

Nothing is certain in tracking cryptocurrency transactions. This is because many whales distribute purchases among different wallets, making it impossible to know who the custodian is.

But what is clear is that after a string of 19 transactions the 6 trillion SHIB bought on September 9th was gone by December 10th. What's also clear is the Shiba Inu whale made millions along the way.

There's a clear pattern throughout the 19 transactions. Almost every day, the whale sent trillions of SHIB to a new wallet before selling a portion, buying more Shiba Inu with the profit, and then sending an even bigger stash to a new wallet.

At its peak, this Shiba Inu whale actually owned 12.07 trillion SHIB.

At the time (November 19th) this would have been worth $591 million. It's impossible to know for sure, but everything suggests the most famous Shiba Inu whale continually bought and sold Shiba Inu to increase their own stash.

It's likely the whale took profits along the way – but even if they didn't, by December 10th they had sold their Shiba Inu for a total of $135 million.

In other words, they made at the very least $35 million in 10 weeks.

At best, they could have grown their $100 million into $1.11 billion.

Just eight Shiba Inu whales influenced SHIB prices last October

Data from the Santiment crypto analysis firm suggests that just eight Shiba Inu whales were almost entirely responsible for the SHIB pump last October.

A graph they put out showed an exact correlation between Shiba Inu price pumps and clusters of transactions over $100k. Unsurprisingly, the reverse was also true. When the 6 trillion Shiba Inu whale sold their remaining 9 trillion SHIB in December (undoubtedly one of those top eight SHIB whales) the price immediately dropped -15%.

Data from IntoTheBlock also suggests a correlation between average transaction size and crashes in the Shiba Inu price.

For example.

On November 2nd just as Shiba Inu had held above $0.00007 for four days, the average transaction size ballooned to $89,000 (it had previously been around $10k – $20k). Furthermore, IntoTheBlock data suggests that 41 trillion SHIB flowed out of large holder's wallets on November 2nd valued at $2.8 billion.

By November 4th the price of Shiba Inu had collapsed to $0.000049.

Unfortunately for around 153,000 Shiba Inu wallets who are still hodling today (around 13% of total wallets) they bought during a window spanning about a month when the Shiba Inu price was above $0.00004.

According to price analysis, much of their investment would have gone straight into Shiba Inu whales' pockets.

Is there a way to avoid whales in crypto?

Crypto whales are a fact of life in crypto.

While hodling may be a philosophy for hundreds of thousands of investors, if you follow the 6 trillion Shiba Inu whale's movements you see that he/she didn't hodl for more than 24 hours. Unfortunately for anyone hodling Shiba Inu since November last year, the movements of huge whales means their portfolios are currently in the red.

So is there a way to trade Shiba Inu without the influence of whales?

Until the Shiba Inu Eternity game and other projects roll out, the answer is no.

But with the collapse of DeFi many investors are looking for new projects that have a different spin on the whale games of crypto. One of the solutions is EverGrow.

Even if you're not ready to invest today, it's worth reading up on EverGrow to arm yourself with knowledge of how to make a wise investment in the future. Let's take a look.

EverGrow – an 'anti-whale system'

The EverGrow white paper explains the 'anti-whale system' in which any sell is blocked if it involves over 0.125% of the circulating supply.

This kind of code would have stopped much of the 6 trillion Shiba Inu whale's sells last year.

But more than that, the whole EverGrow model is designed to avoid whale price pumps and dumps in general. EverGrow charges a 14% transaction tax on any buy, sell or trade which instantly disincentives anyone rapidly moving tokens around the market to make a profit.

So what is the benefit of a token like EverGrow?

The 14% transaction is split so an 8% cut goes towards instant rewards in the BUSD stablecoin. The mechanism allows small to large investors to make stablecoin passive income on their investment. If a wallet chooses to sell a large portion, then 8% of it will be distributed among all holders.

If that wallet chooses to then buy back in at a lower price, the community earns 8% from the movements.

But it's arguably more in the whale's interest to keep holding their EverGrow and earn from BUSD rewards like everybody else. This kind of approach to crypto is new – and it's likely such an approach will win over new investors as retail investors get wiser to whale games like with Shiba Inu.

We may never know exactly how much the 6 trillion Shiba Inu whale made over the course of 10 weeks last year.

But even just an inkling into the movements should make better investors of us all.