Recent data show that 62% of Shiba Inu's total supply is held by just ten wallets, raising concerns about volatility and market manipulation.
Dominance of Shiba Inu Wallets
The top ten wallets for Shiba Inu control 62% of the total token supply, compared to 46% for Ethereum. This level of centralization is unusual among major cryptocurrencies. The anonymity of Shiba Inu’s founders remains intact, and no official comments have been made regarding this centralization.
Concerns Over Price Manipulation
Market analysts warn of the elevated threat of price manipulation due to centralized holdings. The market is concerned, yet leadership communication is lacking. Price volatility is expected as whale movements could significantly influence the market.
Historical Trends and Volatility Risks
Historically, whale-dominated assets have experienced significant price fluctuations. Similar situations in the early crypto markets illustrated the fragility of such ecosystems. 'Such centralization increases tail risks and price shock potential,' states an analyst from Santiment.
The centralization of Shiba Inu's tokens poses risks of volatility and market manipulation, raising real concerns among the cryptocurrency community.
