Shiba Inu Founder's Betrayal?...Whales 'Sell' Bomb to Binance Amid Market Fear

▲ Shiba Inu (SHIB)/ChatGPT generated image

Trillions of tokens have moved from a whale wallet, presumed to belong to the founder of Shiba Inu (SHIB), to a major exchange. Subsequently, fear of a massive token dump has spread across the market, accelerating the exodus of large holders.

According to crypto media outlet U.Today on May 1 (local time), major whales in the Shiba Inu ecosystem have initiated an emergency response by successively depositing billions of assets into the Binance exchange. This movement began with analyses suggesting that early wallets, suspected of being linked to Ryoshi, the mysterious founder of Shiba Inu, have reactivated. In particular, the spread of the so-called 'Ryoshi dump' theory, which suggests that Ryoshi might dump the enormous amount of tokens he accumulated in the past all at once, is severely dampening investor sentiment.

On-chain analysis revealed that the Shiba Inu volume recently flowed into Binance amounted to billions of SHIB, interpreted as a risk management move rather than simple profit-taking. A specific whale belonging to the early investor group recently sold 800 billion SHIB, reportedly realizing a profit of approximately $4.9 million. This large-scale selling pressure is significantly hindering Shiba Inu's price from defending key support levels and is triggering a cascading panic sell among retail investors.

Shiba Inu's price continues its sluggish trend, having fallen 11.43% since early 2026, making it particularly sensitive to news of whale deposits to exchanges. Technical indicators show the Relative Strength Index (RSI) below neutral, indicating a lack of buying pressure, while the Moving Average Convergence Divergence (MACD) also suggests strengthening downward momentum. With whales holding over 60% of the total circulating supply, there are warnings that even a small move by them could trigger a liquidity crisis for the entire market.

The observation that accounts presumed to be Ryoshi's wallets are distributing assets across multiple addresses, seemingly to evade tracking, also fuels market skepticism. Some analysts diagnose that such asset fragmentation could be a precursor to evading regulatory oversight or preparing for a large-scale sell-off. The Shiba Inu development team emphasizes Shibaburn activities and the performance of the Layer 2 network, Shibarium, for ecosystem expansion, but it appears insufficient to quell fears of a founder's token dump.

Despite the overall recovery trend in the virtual asset market, Shiba Inu's independent downward trend signifies a wavering of confidence among large holders. The future movements of wallets related to Ryoshi are considered the most dangerous variable in determining Shiba Inu's long-term survival. Whether the billions of SHIB that flowed into exchanges in May are actually converted into sales will be a key indicator determining the bottom of Shiba Inu's price.

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