The Shiba Inu and PEPE whales have begun to move in a market that is currently shaken with uncertainty.
This time, these prominent investors are sending large amounts of tokens to centralized exchanges like Binance, suggesting that they may be considering dumping meme coins.
Such a move would put undue pressure on both Shiba Inu and PEPE prices at a time when they are struggling to find their footing.
Shiba Inu whale sends 1.8 trillion exchanges
Spot On Chain, a platform that aggregates and tracks on-chain data, reported a transaction carrying a significant amount of SHIB.
While these large transactions are not new, this one stands out due to the coins' destination being the cryptocurrency exchange Binance.
The whale's trade is the most notable, given the number of SHIBs it is carrying, data watchers report. The wallet, which purchased most SHIB tokens between November and December 2023, transferred its total balance to Binance.
At that time, the total amount of SHIB transferred was 1.088 trillion tokens, worth $18.2 million at the time of the transaction.
Interestingly, the majority of its dollar value, $8 million, is from profits, as the tokens are at the bottom of the market. This resulted in a 79% return on investment for the Shiba Inu whale.
PEPE whale despite losses?
Another whale transaction that caught the attention of on-chain watchers was the PEPE whale transaction. Similar to the Shiba Inu whale, the PEPE whale has deposited 700 billion tokens to the Binance exchange. At the time of the transaction, the tokens were worth 7.38 million USD.
However, unlike Shiba Inu whales, PEPE whales actually do not make any profit. At press time, the on-chain tracking firm estimated that whales were losing 12% of their holdings, equivalent to a loss of $3.47 million.
The destination of a transaction can often indicate what the holder intends to do with it. In cases involving centralized exchanges, whether coins enter or leave the exchange becomes even more important.
Of the amount of coins entering the exchange, it could mean that the holder is looking to sell. In the opposite case, when coins leave the exchange, it means investors are accumulating coins and tend to buy more.
Given that whales are sending Shiba Inu and PEPE tokens to Binance, it is likely they are looking to sell. In the event of a sell-off, the already struggling price of these meme coins could fall further as new supply floods the market.