Crypto News

Whale Swaps $SHIB For $FET Amid Market Shifts: Centralization Concerns Rise For Polygon And Shiba Inu

A prominent early Shiba Inu ($SHIB) investor has recently made a significant move by swapping a large portion of their $SHIB holdings for Fetch.ai ($FET).

Over the past 10 hours, the whale exchanged 255.62 billion $SHIB, valued at $3.5 million, for 3.114 million $FET. This shift comes after the whale’s initial $SHIB investment, which netted an impressive $145 million profit between February 2021 and June 2022. However, their more recent $SHIB trade, initiated in June 2024, has been less fortunate, with an unrealized loss of $11.51 million, or -45.9%.

Whale Still Holds $SHIB, Even After The Swap 

The decision to move into $FET appears to be timely, as the token has surged by approximately 14%. Despite the swap, the whale still holds a substantial 713 billion $SHIB, worth around $10 million. This strategy could suggest a pivot towards assets with better short-term prospects, particularly given the recent underperformance of $SHIB.

Amid these individual trading decisions, broader concerns about centralization are casting a shadow over the crypto market, particularly for projects like Polygon (MATIC) and Shiba Inu. Both tokens are showing alarming levels of concentration, with the top 10 wallets controlling 69.4% and 61.2% of their respective market caps. This high degree of centralization poses risks to market stability and could potentially lead to price manipulation.

Other well-known projects, such as Uniswap (UNI) and even Ethereum (ETH), also show significant wallet concentration, with 50.8% and 44.0% of their market caps held by the top 10 wallets, respectively. In contrast, stablecoins like USDC and DAI exhibit a more decentralized distribution, with top wallets holding less than 25%, highlighting a safer approach in terms of market influence and stability.

As the crypto landscape continues to evolve, these centralization issues could become a critical factor in the long-term viability and trustworthiness of various projects.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: moxumbic/123RF // Image Effects by Colorcinch

Leave a Comment

Your email address will not be published. Required fields are marked *

*