Immediately after the dump, a Smart Money address was observed to have made $150K with $21.7K in a strategic SHIK trade.
Shikoku (SHIK), a newly-introduced Shiba Inu-Inspired token, secured a listing from United States-based exchange Poloniex shortly after Vitalik Buterin dumped the tokens allotted to him by the Shikoku team.
Poloniex announced today that it had listed SHIK, opening up deposit functionality at 11:00 (UTC). The exchange opened trading for the SHIK/USDT pair at 11:40 (UTC).
We’re excited to welcome $SHIK to Poloniex!
— Poloniex Exchange (@Poloniex) March 8, 2023
The development came up a few hours after the non-custodial wallet NOW Wallet disclosed that it would also list Shikoku.
Now available in NOW Wallet, @shikokuinucoin has multi-faceted goals.
Not only does it aim to create the Shikoku Inu Decentralized Ecosystem (SIDE) of applications and tools, it also educates investors about self-custody!
— NOW Wallet (@NOW_Wallet) March 6, 2023
Buterin’s 500T SHIK Dump
The Poloniex listing came amid a surge in the project’s social activity following Vitalik Buterin’s decision to dump all the free tokens allotted to him. The Shikoku team had given Buterin 500 trillion SHIK as a gift. The allotted tokens represent 50% of Shikoku’s total supply of 1 quadrillion tokens.
According to the team, the tokens were sent to appreciate Buterin for his role in developing the versatile Ethereum blockchain. The team asked that if the Ethereum co-founder chooses to accept the offer, he should burn 47%, donate 2% to charity and keep 1% for his personal use.
Nonetheless, as highlighted by Lookonchain, Buterin dumped all 500 trillion SHIK tokens yesterday, selling them off for 380 ETH worth $600K. Besides SHIK, Buterin sold 50 billion MOPS tokens for 1.25 ETH and 10 billion Cult DAO (CULT) for 58 ETH. These tokens had been given to him as gifts. The Ethereum co-founder made nearly $700K from this elaborate selloff campaign.
vitalik.eth (@VitalikButerin) is selling his free shitcoins.
— Lookonchain (@lookonchain) March 7, 2023
Following the dump, the value of SHIK collapsed by almost 96%. This sudden price drop allowed traders to rake in some profits, particularly a Smart Money address and an arbitrageur highlighted by Lookonchain.
How did they do it?👇 pic.twitter.com/DieIqBMBDc
— Lookonchain (@lookonchain) March 8, 2023
The Smart Money address procured 34.2 trillion SHIK for 14 ETH ($21.7K) upon the sharp price dip. The address sold 12.2 trillion tokens for 64.6 ETH ($100K). The wallet further transferred out 10 trillion SHIK valued at 26 ETH ($40K) and currently retains 2 trillion SHIK worth 6 ETH ($9.3K).
In the case of the arbitrageur, the address amassed 38 trillion SHIK with 6 ETH ($9.3K) on Uniswap V2, then later sold all the 38 trillion tokens for a price of 89.6 ETH ($139K) on Uniswap V3 and Uniswap V2 shortly after.
Following Buterin’s selloff, the Shikoku team subtly expressed their frustration with the development. They noted that they do not resent and hope Vitalik donates the funds to charity.
Although you have sold your #SHIK, we bear no resentment.
Rather, we ask for you to donate the money sold towards charity, and helping those who need it more than ever.
This is the goal of #SHIK.
We humbly request this.
— Shikoku! (@shikokuinucoin) March 7, 2023