Whale watching is not only a sport in crypto, but a legitimate strategy to get a better grasp on how or why the market is moving in a certain direction. We have done a little bit of work for you, and found something very interesting about an entity controlling a vast amount of Shiba Inu (SHIB) tokens.

Why is this whale investing such a huge sum of money into SHIB, and what can learn from his behavior?

Accumulating since 2022

It is not known who exactly is behind the Ethereum address 0x73af3bcf944a6559933396c1577b257e2054d935, but what we do know is that this single entity bought SHIB continued since June 2022. This hints that whoever holds those 18 trillion SHIB is accumulating the token.

What is even more interesting is the exposure of this address to SHIB. According to Whalestats, over 76% of the token holdings are SHIB. Other token investments are MATIC, LINK, COMP, and UNI. It remains a mystery why the holder of the Ethereum account has weighted his investment strategy this way. One reason could be that the person or entity is even richer than we think, and that this is not the only Ethereum address under his control. In this case, the investment would only represent a fraction of the total exposure to crypto.

On the other hand, should this be indeed the only address that is controlled, it seems that the holder has a strong conviction about SHIB. The fact that the entity also holds a whopping 120,899 ETH on the very same address may indicate that this is indeed the main Ethereum account that is used by that person or organization.

What can we learn from this strategy?

Usually, investors are told not to put all eggs in one basket. Diversifying a portfolio is a basic strategy. It seems that whoever is behind those trades is not paying much attention to this idea, with an exposure worth more than $200 million.

Of course, we don’t know about all the other assets that might be held and the net worth of that entity, but crypto investors are known for their strong moves. Meaning that they often take risky bets by being overly exposed to one specific crypto asset. It might be the case that this entity is betting big time on SHIB. One reason that would support this theory is the possible launch of Shibarium. There are speculations that this launch could happen next month.

Keep in mind that all of this is pure speculation. There are other factors that we don’t know. For instance, this entity might have shorted SHIB using options or derivatives to hedge the spot position. In this case, it wouldn’t even matter if the price goes up or down since the position could be held delta neutral, meaning that the Dollar value for that investment would always be around the same.