Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu's (SHIB) two-day 37% surge ended according to the classic pump and dump scenario: large holders fully cashed out, selling their coins to late retail investors. Fresh on-chain data from Santiment analysts shows exactly how whales used the wave of mass excitement to lock in profits and leave retail traders with losses.
How retail's fear of missing out gave whales an exit route
As soon as SHIB's price began climbing, retail fear of missing out surged across social media. Shiba Inu's social dominance index jumped to 0.084%, its highest level since April.
Ordinary traders rushed to buy the coin, but, as often happens, their attention peaked when the rally was already running out of steam. The crowd entered at the very top.
At the same time, large players began unloading their wallets and cashing out. Within 24 hours, the network recorded 52 whale transactions, each worth more than $100,000 — the highest figure since late March.
The influx of liquidity from retail buyers jumping onto the "departing train" created ideal conditions for large holders to convert their holdings into cash without immediately crashing the order books.
Large capital simply received the liquidity it needed, leaving smaller traders with nothing.
Who really controls Shiba Inu's coin supply?
The detailed structure of SHIB holders on Etherscan explains why retail investors were powerless against the selling pressure and suffered immediate losses. Almost all the power is concentrated in a small number of hands. The Shiba Inu market remains highly centralized:
- Just 0.05% of wallets, classified as whales, control 94.64% of the coin's total supply.
- The top five addresses hold 57.56%, including the main 0xdea... burn address, where 41.04% of the supply is permanently locked.
- The largest accessible holdings are concentrated on exchanges: Robinhood holds 3.92%, Binance holds 3.42%, and Crypto.com holds 2.76%.
When whales began moving tokens to exchanges en masse to lock in profits, smaller investors simply did not have enough capital to support the price. The Shiba Inu price chart confirms that the pump occurred within a prolonged downtrend. The local surge pushed SHIB to $0.00000537, but retail traders were unable to hold those gains.
Under selling pressure, SHIB quickly corrected lower, falling 6.39% on the current weekly candle and returning to around $0.00000497. The illusion of growth disappeared within hours, leaving buyers who entered at the highs deep in the red.
The market has once again proved that when a meme coin's chart begins filling every news feed, it is already too late to take profits. At that point, the rules of the game change, and you are most likely providing exit liquidity for those who bought earlier.
Dan Burgin
U.Today Editorial Team
