A cryptocurrency whale is a highly-respected investor who holds a large percentage of a currency's total supply. In order to be a whale, you must have at least 5 percent of a given coin. A whale has the power to boost a currency's price by selling it at a high volume, while simultaneously causing a drop in its price. Such activity invites accusations that the investor is manipulating the market.
A crypto whale is an investor who holds a large amount of the cryptocurrency market. This is different from a HODLer, who merely holds a small amount of the currency. These investors HODL a much larger number of altcoins than the average investor. It's difficult to quantify how many altcoins a crypto whale holds, because altcoins vary in value. However, certain tools are available to track the movements of these people. For example, there's a Telegram app called WhaleBot Alerts.
A crypto whale's strategy involves putting massive buy and sell orders on a cryptocurrency's books, creating a panic cycle by artificially inflating the value of the cryptocurrency. A HODLer is a long-term investor who holds their cryptocurrency for a long time. This strategy requires a high level of discipline and patience, and is the only way to successfully earn profits from a currency's volatile price.
Who are the whales in cryptocurrency?
The opacity surrounding the identity of crypto whales sits in direct opposition to the transparency of the technology. Articles that attempt to answer the million-dollar question “Who are the crypto whales?” are scattered all over the internet, but unfortunately, linking an address to a crypto whale is nigh-on impossible.
While the transactions are visible, the individuals behind the transactions are anonymous. Crypto billionaires do not make up the rich lists, and aside from a few names that are frequently bandied around, including the Winklevoss twins and Satoshi, there is a remarkable lack of information available to laymen about what shadowy characters are behind these vast hordes of wealth.
This anonymity of course provides crypto with its subversive edge, its mystique, but it also brings with it huge risk. While on the one hand unknown whales led by an unknown pseudonymous creator help maintain the illusion of decentralisation, this anonymity, upon closer inspection, also helps solidify the centralisation of wealth.
As a whale, anonymity renders all kinds of market manipulation relatively easy. Whales can band together to prop up or tank the market.
"Whale" is a term in the financial world, not only used in cryptocurrencies, but also in stocks and other markets. That is used to describe a very large investor who holds cryptocurrency. These individuals are also known as HODLers, and they are not accounts, but rather a type of strategy in which they hold a large amount of cryptocurrency.
In crypto investing, a whale is an investor who holds a large amount of bitcoins. They are responsible for the vast majority of bitcoin's price. They control over 40% of the market, and their single trades can cause huge changes in the price of bitcoin. Therefore, a person with a large amount of cryptocurrency is a Crypto Whale.
Unlike a HODLer, a Crypto Whale is a person who owns a large amount of bitcoin but does not actively trade. The Crypto Whale is an individual who has the power to influence the market. As a result, it is important to understand the different groups of cryptocurrencies. It is essential to understand the differences between them. Often, the difference is in the way they invest their money. Ultimately, the best investment is the one that meets your needs and your budget.
Who has the most cryptocurrency?
As previously mentioned, working out who owns the most cryptocurrency is not possible. Satoshi, the founder of Bitcoin, may hold as many as one million BTC, and thus is most likely the owner of the most. But given the fact it is held in different wallets and these wallets are anonymous, attempting to come to a concrete answer is futile.
However, it is possible to work out the breakdown.
According to recent data, the top three bitcoin wallets own 3.05% of total coins, worth a total value of $37.88bn. Similarly, a report by Glassnode found that 2% of “network entities” control almost three-quarters of all of bitcoin. Humpback whales, according to their categorisations, owned 13.3%, whales had a share of 18.4% and sharks had 3.3%.
Due to the fact crypto whales tend to keep coins in a multitude of different wallets, understanding the precise wealth or accumulated wealth of these individuals is almost impossible. Data also shows how, between the beginning of 2020 and the beginning of 2021, the supply held by large entities (be they whales or humpbacks) surged by 13.4% while the number of such entities entering the space increased by 27% to 2,160.
As crypto has entered the mainstream, high net worth individuals and institutional investors have entered the space. These investors include MassMutual, Ruffer Investments and Microstrategy.