By Km Fazi 
Shiba Inu (SHIB) has attracted fresh attention after the attacker behind the massive Binance security breach reportedly sold nearly 500 billion SHIB tokens, worth approximately $1.96 million. Despite the substantial liquidation, the meme coin showed signs of resilience, recovering from its recent lows as the market processed the impact of the incident.
The reported sale was part of a much larger liquidation involving more than 130 altcoins across EVM-compatible blockchains, with the attacker generating approximately $279 million in total proceeds.
While the Binance incident has raised serious concerns about cryptocurrency exchange security, SHIB’s price reaction suggests that the reported token sale did not trigger an equally significant additional collapse in the market.
Binance Hacker Sells Nearly 500 Billion SHIB
According to blockchain analytics platform Lookonchain, the attacker associated with the Binance security incident sold approximately 499,926,072,560 SHIB tokens.
The transaction reportedly generated 873 ETH, valued at approximately $1,960,615 at the time of the sale.
The SHIB liquidation was part of a broader series of transactions involving more than 130 different altcoins. Lookonchain reported that the attacker received approximately 123,400 ETH, worth $277.26 million, and 1.69 million USDC from the identified EVM-chain sales.
This brought the reported proceeds to approximately $279 million.
The SHIB transaction is particularly noteworthy because of its size. However, the 499.9 billion tokens represented approximately 0.05% of SHIB’s original one-quadrillion token supply.
A separate calculation using the approximately 589.23 trillion circulating SHIB supply reported on October 30 puts the transaction at roughly 0.085% of circulating supply.
Why Did SHIB Price Absorb the Massive Selloff?
Despite the reported liquidation, Shiba Inu did not experience a sustained price collapse directly attributable to the 499 billion SHIB sale.
SHIB had already faced significant selling pressure on October 29, when the Binance security incident triggered broader market uncertainty. The token subsequently dropped to approximately $0.00000446 before recovering.
On November 1, SHIB traded within a relatively narrow range of approximately $0.00000466 to $0.00000472.
According to the latest reported market figures, SHIB was trading around $0.00000468 on November 2, with a 24-hour decline of approximately 0.4% and a weekly loss of around 3.7%.
Several factors may help explain the market’s ability to absorb the reported transaction:
1. Relatively Small Share of Circulating Supply
Although 499 billion tokens sounds enormous, the amount represents less than 0.1% of SHIB’s circulating supply. The headline figure therefore needs to be considered in the context of the token’s overall market supply.
2. Market Liquidity and Trading Activity
Large cryptocurrency markets can absorb substantial transactions through multiple buyers and liquidity providers. However, the available data does not establish exactly how much buying demand offset the SHIB selling pressure.
3. Broader Market Conditions
SHIB’s initial decline coincided with broader cryptocurrency market weakness following the Binance incident. Its subsequent recovery may reflect changing market sentiment rather than a reaction to the SHIB transaction alone.
Importantly, a price recovery does not necessarily mean the market has fully absorbed all potential selling pressure from the attacker.
The $6.3 Billion Binance Security Incident
The SHIB liquidation is connected to one of the largest cryptocurrency thefts ever reported.
On October 29, Binance disclosed a security incident involving approximately $6.3 billion in assets across multiple blockchain networks.
Binance’s initial investigation suggested that a compromised DevOps engineer’s laptop may have allowed an attacker to access a service container and submit unauthorized withdrawal transactions.
However, subsequent reporting by Reuters indicated that investigators identified additional breach points involving the exchange’s transaction-signing infrastructure.
The FBI attributed the attack to North Korea’s TraderTraitor group, according to Reuters’ November 2 report.
The incident also raised concerns across the cryptocurrency industry, particularly regarding the security of exchange infrastructure and the risks associated with large hot-wallet balances.
Binance stated that it would cover the affected assets using its own resources and security reserves. The exchange also reported that approximately 95% of the impacted assets had been replenished and that it would continue purchasing remaining relevant tokens through market and over-the-counter channels until coverage reached 100%.
Is More SHIB Selling Pressure Ahead?
One of the biggest questions for SHIB holders is whether the attacker still controls additional tokens that could eventually reach the market.
According to TokenPost’s October 30 blockchain analysis, an address associated with the incident initially received approximately 499.067 billion SHIB from Binance 14.
The analysis subsequently identified approximately 96.02 billion SHIB moving through three decentralized exchange swaps. A later wallet snapshot showed approximately 403.9 billion SHIB remaining across tracked addresses.
These figures provide an important distinction between the initial token transfer and the subsequent swaps. They also suggest that monitoring the associated wallets remains relevant as the investigation continues.
However, wallet balances alone cannot establish whether the remaining tokens will be sold, transferred, or held.
For SHIB traders, further movements from addresses linked to the incident could become an important source of short-term volatility.
SHIB Price Outlook: What Traders Should Watch
Shiba Inu’s recovery from its recent low offers some encouragement, but the token remains under pressure after its October decline.
The $0.00000446 level represents an important recent price reference because SHIB rebounded after reaching it.
Meanwhile, the $0.00000466–$0.00000472 range observed on November 1 provides a reference for its recent consolidation.
Traders should pay attention to three developments:
- Additional hacker wallet movements: Further transfers or confirmed sales could introduce new selling pressure.
- Broader cryptocurrency market sentiment: Bitcoin and Ethereum’s performance could influence demand for meme coins such as SHIB.
- Binance’s asset replenishment progress: Updates on the exchange’s recovery efforts could influence confidence across the market.
For now, SHIB’s ability to recover after the reported liquidation demonstrates that a large token sale does not automatically translate into a proportional price decline.
Nevertheless, the broader market remains sensitive to the Binance incident, and additional volatility cannot be ruled out.
Final Thoughts
The reported sale of nearly 500 billion SHIB by the Binance attacker has become another major development in an already turbulent period for the cryptocurrency market.
Although the transaction was valued at approximately $1.96 million, SHIB managed to recover from its recent lows rather than experiencing a sustained collapse following the reported liquidation.
The token’s relatively small share of circulating supply may help explain why the market absorbed the transaction, although broader market conditions and liquidity also matter.
The next important development will be whether the attacker moves or liquidates additional assets and how Binance progresses toward fully replenishing the affected funds.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, and readers should conduct their own research before making investment decisions.