DeFi 10116 September 2021

What are Whales in Crypto?

Whales in Crypto

Summary:

· Whales are Crypto accounts holding large coin amounts

· Some sites track whales for market transparency

· Whales can influence a market

Whales are crypto accounts that hold large amounts of coins. These accounts can singlehandedly influence the crypto market. Most popular and famous cryptos have several whales who can influence the market if they choose to. Some well-known sites track whale activities to provide the market with transparency.

One whale or a group of whales can cause a crash if they sell a significant number of coins to generate a more major market selloff. They then double back and buy the coins at lower prices. They can also trigger short squeezes, causing the asset price to soar and attract retail investors. These investors' purchase pressure increases the surge and increases the whales’ holding value.

For instance, on 2nd April 2019, BTC value surged from $4,200 to almost $5,000 within two hours. This looked like a breakout and pointed to one order of 20,000 BTC that happened across three exchanges. The purchase changed the market and was a trigger that saw BTC appreciate over 240% by the end of June the same year.

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