SHIB remains the largest token held by whales, prices rise 15%

Cryptocurrency indeed is a lucrative investment model. Many new and experienced investors are trying their luck with this model. People have increasingly moved their funding to crypto investments. So, if you are interested in Bitcoin read the advantages of trading in Bitcoin.

Along with the growth of cryptos, we also come across many other terminologies. You might be well aware of crypto bid, initial coin offering, crypto winter, etc.

Understanding the concept of crypto whales

A crypto whale is a common term used in the crypto industry. Crypto whales are nothing but the digital account that holds the largest crypto tokens. This digital wallet may be an individual, a community, or an entity. There are more than 100 crypto whales globally. Understanding each one of them individually may not be easy. But yes you can create a list of top 10 investors to follow.

How are crypto whales relevant?

The relevance of crypto whales is in the very way they operate. Such crypto whales account hold more than 15% of the total distribution. Crypto whales can manipulate and increase the prices of each token. Such whales can also create a market demand for crypto tokens. Since the major part of cryptos is sitting idle there will be demand for tokens. To meet the demand developers resort to the increasing price of these tokens.

Crypto whales can also affect the way a token may liquidate. Whales hold a potential part of the crypto token. This makes it difficult for small-time investors to liquidate their funding.

Additionally, crypto whales can also impact the prices of tokens in the crypto market. Investors and market experts are always looking for the transaction details of crypto whales. Now if a crypto whale decides to sell their holdings, then there is a sudden flux of tokens in the market. This sudden supply of a crypto token will impact its pricing. It also creates an impression that crypto whales are here to dump their holdings.

How do crypto whales manipulate prices in the global market?

Yes, crypto whales can indeed manipulate crypto prices. A classic example of this is the price fluctuation of Ether in the year 2021. In February the price of Ether suddenly fell from $1600 to $700. Yes, there could be various reasons for this sudden price decrease. But did you know what contributed a major share of the market decision? Jesse Powell, CEO of Kraken exchange sold all his Ether holdings. This alarmed the market experts. And it created a huge market shock. When crypto whales decide to sell their holdings there is also an increase in the supply of tokens. It also increases the voting rights and other privileges of each investor.

Capitalise on FOMO

Yes, crypto whales leverage this fear in every investor. While the crypto tokens are up for sale there is an increase in prices. Many investors buy a piece of this token without giving way for another increase. It allows investors to gain a profitable deal on prices. Such scheming also allows crypto whales to sell their tokens at decent pricing.

Shiba Inu adds to the trend

Yes, many popular coins like Bitcoin and Ethereum are held in the crypto whale’s wallet. Yet another popular coin to join this club is Shiba Inu. In 2021, the prices of tokens went to an all-time high. During the same year, the prices went up by more than 40%. Crypto whales procured more than 70% of this token for their kitty. Out of this 40% of tokens were managed through a single digital wallet. The whales continued to enjoy more than 800% return on their investment through this token. Shiba is now one of the preferred tokens and whales hold more than 14% of their investments on this token. The profitability of this token has also increased in recent times making it lucrative.

Despite all the market changes, it is important to study the market moves. Keep a close tab on transactions through crypto whales. It will allow you to easily diversify your portfolio. Also, do not hurry in making your investments. As an investor, you need to study the changes before making any funding.