This is going to be a post about the myths, legends, rumours and facts of Shiba.
Lets start right away:
A myth is Shiba has Whales that control a large percentage of Shiba. This is a big myth and is easily explained by looking at the Top holders of Shiba. The number 1 holder is a dead wallet, where Shiba is burned permanently. This causes incorrect figures on coinmarketcap as you will see below:
Top 11 Wallets (1st is a dead wallet)
As you can clearly see coinmarketcap actually includes the dead wallet in the Top 10 Holders percentage calculations. I deem this a myth and you can review all the data raw directly from their site: https://coinmarketcap.com/currencies/shiba-inu/holders/ . Frustrating to see as news articles pick this up and continue to perpetuate this myth, but now you know or you already you knew and you can spread the news.
Rumour Answered: Is Robinhood going to list Shiba? - Strong possibility is a yes. There seems to be a delay but then that would be down to ensuring that they have adequate supply, risk assessment for Shiba pricing but the most importantly in light of the recent security issue they would need to get their house in order first. They are in a very serious situation right now and need to have it fixed, we do not want a compromised exchange selling Shiba.
Rumour Answered: Is Kraken going to list Shiba? - All answers point to a yes, whenever someone asks their Twitter help they do confirm that the listing of Shiba is a yes but cannot confirm when. Again this is ensuring they have adequate supply.
Fact Discussed: I think I should clarify how this generally works with the exchanges - what they will do is typically approach developers first. All good cryptos have a point of contact for exchange listings for general promotion of the crypto which also includes ensuring there is good liquidity, some cryptos sell to exchanges at deep discounts as the exchange agrees a minimum level of service in terms of trade.
For instance/example Robinhood sent a email questionnaire out with a list of a few cryptos including Shiba, which allowed a respondent to choose cryptos they liked. This would allow Robinhood to compare demand for each one and because some cryptos on that list were already trading on Robinhood they know roughly what the demand could be for one vs another, (provided they had enough data cohorts to form a trend). So for example if they send it out to 100 people and it has BTC, ETH and Shiba, with a response of 80% 10% 10% respectively they would glean from that the demand for Shiba would be similar to ETH. If the reply was 20% 20% 60% respectively then they would know that Shiba is going to be quite a popular currency at 3x BTC or 3x ETH's demand.
Furthermore, the developers usually sell direct to the exchange without making the sale public in terms of showing on official figures - if this was a stock exchange then typically (in most instances) the treasury of the company would be required to disclose this but because the cryptos themselves are generally unregulated there is no requirement for them to make this.
Therefore when you see very large transactions take place and you wonder why it didn't affect the price then its usually an exchange having liquidity made available by the developers. Most of the time the exchanges won't actually pay a penny for this and the funds only start coming in once customers start buying hence why the price won't increase. But in cases where the crypto is hugely popular then they will make a payment and sometimes a premium over the long term!
The exchanges mostly use an internal ledger system so they will report the transactions back to the developer or other requisite party, but they do not report the actual internal addresses within their system unless the authorities require them to do so for criminal purposes. So once we all start buying on these exchanges the price will then start rising as this goes from the unsold liquidity pool to the allocated accounts pool.
The exchanges may then offer their clients options to stake i.e. provide additional liquidity to assist the exchange in providing liquidity if their are unforeseen issues hence why you have termed staking periods (instant access, 1 month, 3 months and so on...) this allows an exchange to not break any clauses within its request for liquidity from the developer and avoids the exchange from paying a premium over and above what they require. Don't forget they have pre-purchased this at a heavily discounted price, in some cryptos it could be as great as 50% or even more for those that have not issued their whole supply.
Exchanges also offer margin trading too which is a great way to make quick money as you can usually wipe out the smaller margin traders within a few trades but they keep coming back as its akin to gambling. Now here's my little secret of how to make money in cryptos and one we've been doing with equity/shares/bonds for many years and its so simple.. price arbitrage. I did this with a few less well known coins this past weekend, but you will see that Coinbase for example is usually slightly slower in updating its price than Crypto.com so you have a chance for about 30 seconds to see if something is falling or rising allowing you to jump out. Anyway this is a trading topic which I will leave for another post.
Legend has it that you will lose all your money if you leave it in an exchange. Well this was prevalent some years back with Bitcoin, but with regulated exchanges (ones that ask for your KYC etc.. ) you will find that they have certain criteria they have to meet with the regulators to provide a certain level of protection for you in the event of hacks etc... also exchanges could help you undo an internal transaction if you really mess up in a big way... but rarely. I read an analogy that buying coins with an exchange and leaving it in the exchange is like buying a sofa and leaving it in the shop. Well I think that's rather fallacious, a good fallacy but a fallacy nonetheless.
When you buy shares/bonds in a traditional financial setting you contact a stockbroker for instance who arranges to buy the stock/bond for you. You need to have it in a stockbroking account nowadays rather than the old paper shares or bearer bonds, same principle with coins, you buy it and leave it in the exchange. Taking it out is like walking down the road with bearer shares, someone could steal it and its now 100% theirs. You could trip up and the wind takes it (akin to forgetting your passcodes etc...).
I do recommend if you have super significant holdings to speak to banks on how to protect yourself - the biggest private banks offer these services and have done for the last 3 years so they are used to coin millionaires - they will ensure your taxes are dealt with in an efficient way too. Some may recommend you create a trust and transfer some of the holdings to a trust (you incur a gain when you do this), but then afterwards the trust will be a separate, usually offshore entity legally avoiding any taxes - again a bank will direct you on this. Do not trust anyone in forums or on websites - physically goto a big private bank like JP Morgan, UBS, Credit Suisse, Coutts (the Queen uses this one - minimum $5m wealth to open facilities with them).
Rumours of Kanya West being part of Shiba because Shytoshi tweeted about it is just a rumour and completely unnecessary to be spread. Shiba does not need one character to represent us in order to be mainstream - Shiba is mainstream. It is better for us to have 100 characters, I always ask the question what happens if Elon Musk passes away for whatever reason tomorrow... how much of Tesla's share price is directly attributable to him. We never want this situation of one star, its better to have many so no one star can control the price of Shiba. What if they get a better secret offer from another coin one day - they could say what they like and damage Shiba. Be careful of anointing kings or queens.
Fact, Shiba has for weeks now battered twitter non-stop with tweets, so much so that we are now rarely mentioned as trending but we are always trending! This is a great thing and we should keep going. Shiba is listing on other exchanges, we had a listing on an indian exchange DCX:
Finally I just want to say thank you to all of you for really positive comments and for taking your valuable time out of your busy day to read what I write here. Keep messaging me topics you'd like me to cover and I will research it for you guys as best as I can. Thank you.
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