Popular cryptocurrency exchange Crypto.com has announced the acquisition of a 20% stake in the highly speculative Shiba Inu (SHIB) token "mm coin".
According to blockchain analytics company Nansen, the platform has the largest share of digital assets in Bitcoin (31%), followed by SHIB with 20%. The Ethereum-based meme currency is worth about $570 million on Crypto.com, according to Nansen.
Crypto.com's stock is dominated by Ethereum, which accounts for 17% of the firm's holdings, while stablecoins Tether (USDT) and USDC account for about 5% of the exchange's holdings. Cryptocurrencies and various other tokens accounted for 20% of the total.
The exchange shares were found by Nansen through a series of wallet addresses, which he later compiled into a single panel. Crypto.com CEO Chris Marzalek confirmed the information on his Twitter feed and said the exchange will provide more details on its full inventory in the coming weeks.
The news is that FTX, one of the largest and most popular cryptocurrency exchanges, has collapsed after a massive lack of liquidity. This led the White House to call for more regulation of the industry, and customers have now left billions of dollars in inaccessible assets on the FTX platform.
According to CoinGecko, SHIB is the 14th largest cryptocurrency in the world with a market cap of $5.7 billion. It's an ERC-20 token, meaning it runs on the Ethereum network, and is a competitor to Dogecoin, which has grown in popularity since Elon Musk took over.
Meme coins are cryptocurrencies and tokens that are often created from internet memes. They often have no significant practical application and their values can change quickly and dramatically.
The value of SHIB is falling rapidly and currently stands at $0.000009774634 per token, which is 88.6% below its all-time high. It has a market capitalization of more than $41 billion by 2021, making it a larger market capitalization than many companies in the S&P 500.