Shiba Inu Traders Lost $46.5 Million On First Day Of Futures: Analysis

Shiba Inu traders lost about $46.5 million on the first day of SHIB futures while previously the meme coin zoomed to the top 20 market cap as we reported in our altcoin news recently.

The data shows that Shiba Inu traders lost millions of dollars on the currency’s futures while previously they seemed to have been doing fine. The token increased 1720% in the past week and 2,428% in the past two weeks with more than 30,060% in the past month alone. This means that an investment of $100 would have been worth $1,720 or higher but not everyone makes profits as some traders lost big.

Futures are a financial instrument that tracks prices of underlying assets and these traders lost over 1.34 trillion SHIB trades in the past 24hours alone as per the data by ByBt. They were liquidated which means that their positions automatically closed out when the prices reached a predetermined level with the traders borrowing funds in excess of their principal capital to place much bigger bets on the price movements of the token. The amount was worth $40 million and as the data shows, crypto exchange OKEx that listed SHIB futures a day ago oversaw about $40 million worth of liquidations. Out of these, $25 million were short.

Binance also listed the 1000 SHIB perpetual each which saw $6.5 million in liquidations out of which $3 million were long positions and about $3.54 million were short positions. The Shiba Inu token ranged in a narrow place right after exchanges launched the sHIB futures. SHIB is the project’s token that promises to skyrocket and has a circulating supply of 394,760 billion and a market cap of $12 billion and a fully diluted market cap of $31 billion. The trading volume over the past day on centralized and decentralized exchanges crossed over $14 billion and made SHIB one of the most traded assets.

Memecoins are being pushed on social media by amateurs that are seeking a DOGE alternative. In the meantime, the Shiba Inu traders lost on memecoins and futures traders that bet on DOGE saw liquidations to the tune of $105 million and joined in on a broader market dump where more than $1.74 billion was liquidated.