Shiba Inu is viewed by many as a parody of the popular and similarly canine-themed Dogecoin.
Sergey Taran/Dreamstime.com
Shiba Inu plunged Thursday after signs that one of the largest holders of the cryptocurrency had begun to move their holdings around, in what may be a precursor to a major sale of the digital asset.
Shiba Inu, a crypto that many view as a parody of the more popular and similarly canine-themed Dogecoin, tumbled 15% Thursday, according to price data from CoinDesk.
The slide saw Shiba Inu fall down the chart of crypto market capitalization, losing its place above rival Dogecoin as well as USD Coin and settling as the 11th largest cryptocurrency, according to data from CoinMarketCap.
Shiba Inu’s market cap remains in the realm of $29 billion. For reference, the market cap of the leading digital asset, Bitcoin, is near $1.2 trillion.
Shiba Inu’s tumble coincided with the movement of significant quantities of coins across the blockchain—the decentralized ledger technology that underpins cryptocurrencies—to other wallets.
More than 40 trillion coins were moved Wednesday from the wallet of a Shiba Inu whale, one of the largest holders of the coin, to four wallets, according to blockchain analytics tool Etherscan.
That may have spooked individual investors and prompted the selloff. The Shiba Inu holder has been identified by crypto watchers as the investor who turned an initial investment of $8,000 in Shiba Inu into some $5.7 billion.
When holders of large quantities of cryptos jockey their coins around, it is indicative of a possible future sale. That can prompt sharp price movements, especially in the likes of Shiba Inu, which has a particularly concentrated ownership.
It has been a tumultuous period for Shiba Inu, which hit record highs last week as a petition for the coin to be listed on the Robinhood Markets (ticker: HOOD) exchange gained traction.
Write to Jack Denton at jack.denton@dowjones.com
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