Dogecoin (DOGE) and Shiba Inu (SHIB) traders lost more than $ 200 million yesterday after Ethereum co-founder Vitalik Buterin burned some of his tokens, according to data taken by Bybt.
While Dogecoin is perceived as a presumed legitimate currency by similar to Elon Musk, Shiba Inu from obscurity temporarily became the twelfth largest cryptocurrency in the world earlier this week with a market capitalization of nearly $ 12 billion.
Some Shiba owners made millions of dollars by investing just a few hundred dollars, with Shiba rising 34.932% from its record high in November.
However, while some laughed, others cried. Bybt data show that traders betting on the rise of Shiba were massive. “liquidated“On Wednesday night. “Liquidation“For the uninitiated, they happen when leverage positions are closed automatically by exchanges / intermediaries.
What’s going on with Shiba
Futures and margin traders – who borrow capital from exchanges to make larger bets – place a small amount of collateral before making a deal. If the market moves against them, the collateral is strengthened and the position is “liquidates“.
So what caused Shiba’s prices to drop by 40%? The probable culprit is the market reaction of Buterin, who burn some of your SHIB tokens (He was sent 50% of the token supply by the creators of Shiba Inu back in 2020) and made a donation of over $ 1 billion to the Indian Coronavirus Aid Fund.
The decline in spot markets caused an almost cascading effect on futures. Over $ 148.48 million (DOGE 364.39 million) was liquidated, while $ 83.15 million (SHIB 4.65 trillion) was liquidated.
Of Shiba’s liquidations, $ 44.59 million went to the Huobi cryptocurrency exchange, $ 38 million to OKEx and $ 485,000 to FTX. The remaining $ 10 million was eliminated from the product ‘1000SHIB‘of Binance, where each contract represents 1000 SHIB tokens.
But don’t feel bad for meme token traders. $ 3.91 billion worth of liquidations took place in the market yesterday, especially after the CEO of Tesla Elon Musk wrote on Twitter that the electric car company will no longer accept Bitcoin as a method of payment for its cars.
A total of 382,000 traders were liquidated, with the most serious liquidation taking place at Huobi: Bitcoin deals worth $ 38 million.
READ MORE: Brothers become millionaires after investing $ 8,000 in Shiba Inu (SHIB)
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