Shiba Inu Price Drops Amid Crypto.com’s Massive Token Transfer

Shiba Inu Price Drops 10% as Crypto.com Shuffles $390M in Tokens

Shiba Inu Price Drops – On January 7, 2025, Crypto.com made headlines after transferring a large sum of Shiba Inu (SHIB) tokens to an unidentified wallet. The unexpected move caught the attention of the Shiba Inu community, causing waves of speculation and concern. Blockchain tracker Whale Alert flagged the transfer, revealing that Crypto.com had moved massive amounts of SHIB tokens in multiple batches, sending over 32.74 trillion SHIB, worth approximately $390 million, to an unknown address.

The Massive Shiba Inu Transfer Explained

According to Whale Alert, Crypto.com initiated the first transfer of 1.634 trillion SHIB from its hot wallet “0xf2B0” to an unidentified wallet “0xa23f”. The transaction occurred at 13:47 UTC, with the value of the transfer estimated at $39 million. In a surprising move, Crypto.com didn’t stop there. The exchange proceeded to make several similar transfers within the same hour, shuffling the exact amount of 1.634 trillion SHIB five times.

Upon deeper investigation, The Crypto Basic revealed that the total sum of 32.74 trillion SHIB was transferred to the same receiving address, which was identified as a Crypto.com Deposit address. This suggested that the exchange was moving excess Shiba Inu tokens from its hot wallet to its deposit address, a standard internal procedure used by large platforms for enhancing liquidity and security.

Why Was the Community Stunned?

The size of the transfer raised eyebrows among Shiba Inu enthusiasts and traders. Some speculated whether these large movements were indicative of a hacker siphoning funds from Crypto.com, while others believed it could be a sign of whale accumulation. The latter theory suggests that a major investor may be buying significant quantities of Shiba Inu and moving the tokens into a self-custody wallet for safekeeping.

Despite the rumors, the transactions were largely internal, with no evidence of foul play. Large exchanges like Crypto.com often engage in such transfers to improve their liquidity and streamline their operations. However, the timing of the transfer coincided with a significant market downturn, which saw Shiba Inu plummet by nearly 10% on January 7, 2025.

Shiba Inu’s Price Action

Following the massive transfer, the price of Shiba Inu continued its downward trend. The meme-inspired cryptocurrency dropped by 10% on Tuesday, reaching lows of $0.00001965. By January 8, the price had retraced slightly, declining by another 1.24% to trade at $0.00002151. This continued downtrend has led many to wonder whether the internal shuffle of tokens was a prelude to a larger move in the market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.