Shiba Inu (SHIB), an Ethereum-based meme token similar to Dogecoin (DOGE), has seen its price more than double after being listed on major cryptocurrency exchanges including Binance, OKEx, KuCoin, and Poloniex.
According to CryptoCompare data, the price of SHIB has been surging ever since it was launched, even as the price of DOGE declined after Elon Musk appeared as a guest host on Saturday Night Live. In its listing announcement Binance, the world’s leading cryptocurrency exchange, explained the coin is an “experiment in decentralized community building and another meme coin.”
The exchange warned that the top three wallets currently hold 50.5%, 7%, and 3% of the cryptocurrency’s total supply. If these large token holders decide to sell all of their holdings at once, the price of SHIB would crash.
Binance added that SHIB “poses a higher than normal risk” and as such the exchange cautioned its users to “exercise sufficient risk management” and do their own independent research on Shiba Inu’s fundamentals to fully understand the project before trading SHIB.
The token’s price, despite these warnings, has skyrocketed on these listings, going from $0.000015 earlier this month to over $0.00003 at press time.
The token was listed on Binance’s Innovation Zone, a “dedicated trading zone where users are to trade new, innovative tokens” that are likely to experience higher volatility and pose a higher risk than other cryptoassets.
Before being listed on major centralized exchanges, Shiba Inu was tradeable on leading Ethereum-based decentralized exchange Uniswap, where high transaction fees on ETH were likely hindering some traders’ access to it.
Shiba Inu itself claims to be nicknamed the “Dogecoin killer,” and advertises the launch of an upcoming decentralized trading platform called Shiba Swap, that hasn’t yet been launched.
Featured image via Pixabay.