Cryptocurrency has been an incredible investment model. Time and again this investment model has proven to be lucrative for every investor. Bitcoin entered the global market as the first-ever crypto token. Soon after Bitcoin, many other crypto tokens also made their entry into the investment world; sign up today there are more than 14k crypto tokens. The total market capitalization of crypto tokens has increased to $3 trillion.
Getting to know crypto whales
With the advances in crypto investments, it is important to understand a few concepts here.
Crypto whales or simply whales is a term used to denote a community of investors. Such investors hold crypto tokens in large volumes. These crypto whales are capable of manipulating crypto markets including their price. Crypto whales can hold more than or up to 10% of a particular token.
Going by market study, it is understood that crypto whales hold all tokens. More than 100 wallets hold up to 15% of the total Bitcoin in circulation. More than 52% of Shiba Inu tokens are held in 15 digital wallets. Such wallets and crypto owners can directly impact the prices of tokens in the global market.
How do crypto whales affect the liquidity of tokens?
Crypto whales and their wallets are high-profile accounts. Such account holders can directly control the way a crypto token can liquidate. Such crypto-tokens remain frozen in an account for a longer period. It reduces the number of tokens in supply thereby increasing its demand in the market.
Whales control the prices of tokens in the marketplace
Crypto whales can also control the prices of each token in the global market. When whales tend to sell their tokens in the marketplace, there is an impression of market dumping. It alerts the global owners of such market moves and is likely to undertake market dumping.
How do crypto whales impact normal investors?
Other than market dumping, crypto whales can undertake normal transactions. It could also mean that crypto whales are moving their funding to another account. Rather than selling their existing holdings, crypto whales may just move their funding. Also, crypto owners may not necessarily sell all their holdings in one go. It could also mean that they may limit their releases by breaking down each transaction. This is a strategy adopted by crypto whales to ensure that they draw unwanted attention. If you are a new or regular investor then it is best advised to keep attention on the market changes. Ensure that you track market movements to make the right decisions.
5 crypto whales that you need to keep under your radar
Now that you have understood the concept, let us look at 05 crypto whales. These five crypto whales will help you to make the right decision in your investment journey.
Sam Bankman Fried
Sam, is the top crypto whale that you need to keep under your radar. The current worth of this crypto whale is close to $20 billion and counting. Sam is an American entrepreneur and investor and founder of FTX.
Zhao’s interest in cryptos started in the year 2014. This investment pattern grew his interest and created the first popular crypto exchange. He is the founder of the Binance crypto exchange. This exchange made Zhao a billionaire in less than 06 months. His net investment in crypto tokens is $17 billion.
The Winklevoss Twins
Former Olympic rowers, crypto billionaire, and owner of Gemini crypto exchange. Both founders today own close to $3 billion crypto tokens each in their accounts. Besides other digital assets, the founders hold close to 70k Bitcoin in their wallets.
Barry is the founder of a venture enterprise ‘Digital Currency Group’. The company has invested in many blockchain projects crossing more than 15 countries. Barry today boasts to hold crypto investments worth $ 3 billion.
Chris is an American investor and former CEO of Ripple, a blockchain platform. It enables financial institutions to undertake a transaction using blockchain technology. The total net worth of Chris is more than $2.5 billion.
Being a crypto investor, you can look out for transactions of the above crypto whales. Keeping a close tab on their transactions will allow you to make sound investment decisions.