What is a “crypto whale”? - Crypto in Plain English - Episode 108 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it24 Feb 2022

What is a “crypto whale”? - Crypto in Plain English - Episode 108 - by cryptohunt.it

What is a “crypto whale”?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let's talk about those so-called "crypto whales": What they are and the dangerous influence they can have.

Crypto whales are holders of large amounts of a cryptocurrency's supply. They could be institutional investors - meaning banks and other investment funds - or individuals. But they all have the same in common: They hold enough crypto to influence markets with their decisions.

And that's where the term comes from too. Think of an actual whale letting their gigantic tale dance - the ripples created from the large creature can be felt by all the smaller fishes.

And that's what worries those small fish, which are the smaller investors. They fear that whales pump a market for their own gain, and then suddenly dump everything and leave everyone else with prices that are in free fall. That is because of the supply those whales control, they are able to manipulate prices quite easily. A whale starting to sell large amounts could cause price collapses for example.

But however YOU feel about crypto whales, looking at their actions closely is always a good thing to know what's going on in the market.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

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