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3.2 Trillion Shiba Inu Token Purchase Was Possibly Made by Squid Game Scammers, Here's What it Means for Token

Thu, 12/09/2021 - 08:57
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Arman Shirinyan
Shiba might become another victim of Squid Game scammers who stole millions in users' funds
3.2 Trillion Shiba Inu Token Purchase Was Possibly Made by Squid Game Scammers, Here's What it Means for Token
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The most recent large Shiba Inu transaction worth approximately $125 million has been a foundation for an unpleasant discovery. A Shiba-related Twitter account found out that the entire purchase was made with scam-related funds and might become a problem for the whole Shib community.

Transaction sources

According to the Etherscan page provided by a Shiba-related Twitter account, the three trillion SHIB purchase could potentially have been made by creators of the notorious "Squid Game" GameFi project that has stolen investors' funds and disappeared shortly after without delivering any product.

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The transactions that have appeared on the chain are tied to wallet addresses that have been "marked" with stolen tokens and sent to the mixer application to hide the traces. Though the theory still needs confirmation, tokens in fact are tied to an address ending in "c802c," which is being utilized by the crypto mixer application.

What does this mean for Shib holders?

If the aforementioned transaction was in fact made by Squid Game scammers, a significant part of Shiba Inu's circulating supply is now being held by people who tend to manipulate the market price of an asset in order to benefit from it.

Trading View Daily Chart
Source: TradingView

The highlighted funds themselves are not going to drop the asset price "to zero" but could, in fact, harm and even stop the local growth rally. With the existing volume on the market, three trillion Shiba Inu tokens would be responsible for up to 50% of the daily trading volume.

At press time, Shiba Inu is trading at $0.000036 without showing any significant moves in the last five days. Extremely low volatility hit SHIB markets after the token's price dropped by 25% in one day and then swiftly recovered 15% after bottoming out.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.