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Recently, the cryptocurrency market witnessed the catastrophic drop of Shiba Inu inspired token,SHIKOKU, which lost nearly 100% of its value after Vitalik Buterin unexpectedly sold 500 trillion tokens. However, some traders managed to turn the situation into profit.
SmartMoney and an arbitrageur noticed the sell-off and immediately bought SHIKOKU at very low prices, then sold it at a higher price. The SmartMoney bought 34.2T SHIKOKU with 14 ETH and sold 12.2T SHIKOKU for 38.36 ETH, 10T SHIKOKU for 26.24 ETH and transferred 10T SHIKOKU. They currently hold 2T SHIKOKU. The arbitrageur bought 38T SHIKOKU with 6 ETH and sold it for 89.6 ETH.
Vitalik Buterin's sale of 500 trillion SHIKOKU tokens resulted in the price of SHIKOKU plummeting by nearly 80%. This unexpected sell-off may have caught many investors off-guard and resulted in significant losses. However, some traders were quick to notice the situation and capitalized on the opportunity. This demonstrates the importance of being vigilant and keeping a close eye on the market.
1/ Due to #VitalikButerin selling $SHIK yesterday, a SmartMoney made ~96ETH ($150K) with 14 $ETH on $SHIK, and an arbitrageur made 89.6 $ETH ($140K) with 6 $ETH on $SHIK.
— Lookonchain (@lookonchain) March 8, 2023
How did they do it?👇 pic.twitter.com/DieIqBMBDc
A sudden drop in price is not uncommon in the cryptocurrency market, as it is highly volatile and subject to fluctuations. However, such extreme drops can result in panic-selling and further exacerbate the situation. Therefore, it is important to exercise caution and consider the long-term potential of a cryptocurrency before investing.
Despite the recent sell-off, SHIKOKU may recover in the future as it is extremely illiquid, and its price could swing higher after traders provide a relatively insignificant buying volume. However, investors should always conduct thorough research and analysis before investing in any cryptocurrency to avoid losses.
Dan Burgin
Alex Dovbnya