Shiba inu slid as much as 21% on Thursday after a crypto whale moved $2.3 billion in tokens from their wallet.
The wallet holder - the second-biggest shiba inu owner - moved the tokens earlier this week.
"If he decided to sell these bags, SHIB would plummet -99.99% to zero. Oof," an analyst tweeted.
Shiba inu tumbled on Thursday, as investors booked profits after a crypto whale moved $2.3 billion worth of coins out of their wallet, in a tumultuous week that also saw a major crypto exchange hold off on listing the token.
Shiba inu, which briefly overtook dogecoin to be the ninth-biggest cryptocurrency last week, fell as much as 21% to a 24-hour low of $0.00004428.
This most recent leg-down was triggered by evidence that the second-biggest holder of shiba inu had moved as many as 40 trillion tokens from their wallet - often seen as a precursor to a large sale.
The wallet had been inactive for some time, and many thought the user might have lost the key needed to access it, but this proved not to be the case.
"If he decided to sell these bags, SHIB would plummet -99.99% to zero. Oof," Jacob Oracle, a financial analyst said on Twitter on Wednesday.
This isn't the first time a shiba inu whale has caused big swings in the price. The token rose more than 20% to another record after a big holder purchased 276.6 billion tokens in late October.
Shiba inu's market capitalization stands at $31 billion, ranking it 11th in terms of total market value. It's gained almost 570% in a month, compared with a rise of 20% in bitcoin, the largest cryptocurrency by market value.
Some investors are cautious of the coin because they are not convinced it has real use cases. The exchange Kraken ruffled the feathers of the so-called SHIBArmy this week when it suggested it might list the coin only to back down for the time being.
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