As Elon Musk Signals Dogecoin Support, Shiba Inu Coin Has Suddenly Crashed 50%—Here’s Why

Shiba inu, the challenger to dogecoin’s meme-based crypto crown, has stormed into the crypto top ten in recent weeks.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains

Branded as the “dogecoin killer,” shiba inu has rocketed on unfounded expectations trading app Robinhood and the crypto exchange Kraken could be about to list the memecoin.

This week, a shiba inu whale moved almost $3 billion worth shiba tokens from its original wallet, sparking fears some large holders could be about to cash out.

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

MORE FROM FORBESThe Next Shiba Inu? Facebook Meta Sends The Price Of This Minor Bitcoin Rival Soaring 300% To $6 BillionBy Billy Bambrough

“It looks like there were four transactions out of that account yesterday, each sending $695 million of shib to a different account—so a total of $2.78 billion,” Tom Robinson, co-founder of blockchain forensics company Elliptic, told Bloomberg. “Whoever it is purchased the shib on Uniswap about a year ago, for not very much.”

If large cryptocurrency holders—be it bitcoin, shiba inu or dogecoin—begin moving coins, traders can be spooked into thinking the market could be about to be flooded, potentially driving down the price. Last month, researchers warned “the bitcoin ecosystem is still dominated by large and concentrated players,” making the cryptocurrency “susceptible to systemic risk.”

The shiba inu coin price, still up 500% on this time last month, has lost 50% of its value over the last week. Shiba inu has soared amid wild speculation Robinhood could be about to add the cryptocurrency to its platform—something that would open up…