Traders lost $200 million in Doge and Shib trades yesterday, but they weren’t the worst offenders

382,000 traders were liquidated, with the largest single liquidation order occurring on FireCoin: a bitcoin trade worth $38 million.

Traders lost 0 million in Doge and Shib trades yesterday, but they weren't the worst offenders

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According to market data from Bybt, a digital currency contract data query, analysis, and early warning type tool, Dogcoin (DOGE) and Shiba Inu coin (SHIB) traders lost more than $200 million after Vitalik Buterin, one of the founders of Ether, dumped some of his assets.

While dogcoin is touted by Elon Musk and others as the “best” cryptocurrency of the future, earlier this week SHIB “petcoin” temporarily went from obscurity to become the world’s 12th largest cryptocurrency with a market cap of nearly 12 billion dollars.

The price of Shiba Inu has risen 34,932,200% from its all-time low last November to its current price, and some SHIB investors have made millions of dollars with just a few hundred dollars invested, stories that have inspired an influx of speculators into the burgeoning space.

However, some laughed and some cried, and Bybt data showed that traders betting on SHIB’s rise were massively “liquidated” on Wednesday night. Liquidation” occurs when an exchange/brokerage automatically closes a leveraged position as a “safety mechanism” for the uninformed.

Futures and margin traders (who borrow funds (usually several times) from the exchange to make larger bets) provide a small amount of collateral before trading. If the market moves against them, the position will be “closed out”.

So what caused Shiba Inu prices to plummet 40%? The likely culprit was the market’s reaction to Vitalik Buterin selling off some of his SHIB holdings (he was given away 50% of his token supply by the token creator in 2020) and donating over $1 billion worth of funds to India’s Pandemic Relief Fund.

The plunge in spot prices had a near cascading effect on futures. over $148.48 million (364.39 million DOGE) was liquidated for DOGE traders and $83.15 million (4.65 trillion SHIB) was liquidated for SHIB traders.

Of the SHIB liquidations, $44.59 million was on crypto exchange Firecoin (Huobi), $38 million on OuYi OKEx, and the least amount was liquidated on FTX at $485,000. The remaining $10 million was cleared through Binance’s “1000SHIB” product, where each contract represents 1,000 SHIB tokens.

But what happened afterwards showed that the “Mod Petcoin” traders were not the worst off in the entire cryptocurrency market, and soon afterwards, a much larger liquidation occurred. Tesla CEO Elon Musk tweeted that the electric car company would no longer accept bitcoin as a payment method for its cars. In the wake of this, $3.91 billion worth of liquidation took place in the market yesterday.

382,000 traders were liquidated, with the largest single liquidation order occurring on Firecoin: a bitcoin transaction worth $38 million.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/traders-lost-200-million-in-doge-and-shib-trades-yesterday-but-they-werent-the-worst-offenders/
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