What Are Crypto Whales And Why You Should Fear Them
As you know, whales are investors that have a big impact. They have so much money in cryptocurrencies that they can alternate the market. What if they join to influence the value of coins? That is why it is important to know about them, our future is in their hands.
What are whales
Whales are powerful investors. An individual is considered a whale when he is powerful enough to change the value of a coin in a gigantic amount. When you see an extreme and sudden jump on the chart of your coin, it is for sure that there are one or more whales together influencing the value.
How do whales influence the crypto market:
The decision of rising and falling of the values is always between the whales. Imagine that one day five Bitcoin whales come together, they make a decision that they all sell their coins at the same second. This would cause a catastrophic fall, directly after selling their coins they rebuy them. At this point, with the profit they got from selling, they buy more at an incredibly low price. This will bring them more wealth than they already have. If they continue this process they would influence the entire value of Bitcoin.
How to become a whale
It is not necessary to be rich for becoming a whale. At ICO's big projects sell their tokens for very low prices. If you make a wise decision in such a situation you might become a whale. This is in the case that the token increases a lot in its value, so make sure the project is worth it.
An example of a Whale action
In this chart, we can see how an immense fall takes place in minutes. This drop was caused by a group of whales. I put this example so you see how powerful the whales can be. And this will get worse with the matter of time.
Conclusion
Whales are the biggest animals in the ocean. Or if you prefer, the most powerful investors in the market. I think that there will come up an idea of how to stop them but until now this problem wasn't the priority. Thanks for reading, follow my account to stay informed.
Fact of the day: The top 300 Bitcoin addresses control a 25 percent of all circulating coins.
It's the perfect situation for capitalistic inequality. Or an anocracy, if you will.
https://en.wikipedia.org/wiki/Anocracy
I appreciate you sharing this post, Alex. It made me think a little deeper about the powers at large.
what is the source for the 25 percent reference?
You can search for a chart with the richest Bitcoin addresses, with that data you can make your calculations.
The richest Bitcoin addresses are mostly exchanges
By the whale:
so steemians which ico is the most promising right now
You are concluding the article with your thought tat Crypto whales needs to be stopped. Why that ? I understand they are powerful on a market. What are the risks of a bad behaviour than a good ? What are examples of big positive or negative influences.
Whah! it's very useful. I didn't know we could call hem "whales" event outside Stemmit world. It's crazy how the metaphor is perfect.