Last week, one of India’s biggest cryptocurrency exchange WazirX started trading in the “Doge killer” Shiba Inu token. It was listed at around Rs 3 while actually being worth about just Rs 0.0016.
The third party liquidity provider WazirX was dealing with couldn’t guarantee liquidity at first due to low volumes of trading at the start. But Indian buyers kept on putting deposits to buy it without looking at its actual price, leading to it coming back to its original price. By then, the damage was already done, several people were in the red.
Today, when SHIB market went live, its deposits and withdrawals took longer to go live due to a misconfiguration. There was also a delay in our liquidity provider bringing in liquidity, and that led to a liquidity crunch in SHIB market. With more people trading, SHIB prices climbed up due to the lack of liquidity,Statement from WazirX
On another note, Vitalik Buterin, the 27-year-old co-founder of cryptocurrency platform Ethereum, has donated 500 Ether coins and over 50 Trillion Shiba Inu tokens worth over $1 billion to The India Covid 19 Relief Fund.