CryptoURANUS Economics: Whales: Defined in CryptoCurrency


Saturday, August 11, 2018

Whales: Defined in CryptoCurrency

The Land-Locked Whales 

About Whales in CryptoCurrency:

Regards private financial institutions forcing governments into regulations, investing cycles, and the FUD (fear, uncertainty, and doubt), is another key factor impacting cryptocurrency market activity related to this jargon word: “Whales.”

A Whale is a person, group, trust, and-or private financial institutional system  having an extreme high amount of currency capital to invest and manipulate in the cryptocurrency markets which is opposed to organic.

This private cryptocurrency collective institutions and individuals are called “Whales”.

The Whale is the largest creature in the ocean, so cryptocurrency Whales are the largest land-locked Whale players in the market.

Although some individual investors are Whales, they can also be groups or companies such as hedge funds or trusts. Any party who has a high amount of capital to invest in cryptocurrencies can qualify as a whale.

What is a whale in Cryptocurrency?

[Source - Bloomberg]: Occasional sighting of Bitcoin whales are leaving advocates of the biggest cryptocurrency anxious after what's already been a choppy week of trading. ... And some investors are blaming the gyrations on actions by large Bitcoin holders, known as whales.Apr 18, 2018.....
[InvestoPedia]: DEFINITION of 'Bitcoin Whale' A bitcoin whale is term in the cryptocurrency world used to refer to individuals or entities that hodl, (Hold On For dear Life), large amounts of bitcoin....

Known Cryptocurrency Whales:

There are a number of both individuals and groups who are currently known as Whales. Some of the best known Bitcoin Whales who are individuals include:
  1. Cameron and Tyler Winklevoss
  2. Roger Ver
  3. Charlie Shrem
  4. Satoshi Nakamoto

[Satoshi Nakamoto]:  "Satoshi Nakamoto is the name used by the unknown person or people who developed bitcoin, authored the bitcoin white paper, created and deployed bitcoin's original reference implementation.[1] As part of the implementation, they also devised the first blockchain database.[2] In the process they were the first to solve the double-spending problem for digital currency using a peer-to-peer network. They were active in the development of bitcoin up until December 2010."...

Satoshi Nakamoto is the anonymous-name used by original creator of Bitcoin.

This is said by the cryptocurrency that "Satoshi Nakamoto" owns around one million Bitcoins.

Though he can technically be considered another ghost in the machine, as a whale investor, it is unlikely that he would unload his BTC holdings, at least all at once.

The Winklevoss twins have rumor to own hundreds of thousands if not millions of Bitcoins.

The twins purchased BTC as an investment, so it is possible they will sell off their holdings at some point in the future ounce regulation begins enforcement by the family-names of all private financial institutions.

To put their investment into perspective, one hundred thousand Bitcoins is currently valued at around $1,100,000,000.

This makes Cameron and Tyler Winklevoss (and Satoshi Nakamoto) Bitcoin billionaires and most likely even trmillionaires if the cryptomarket is not taken over by private financial institutions.

Many top individual Whales could soon become more than Bitcoin billionaires, if the Whales force price changes continues as trend.

The known individual cryptocurrency Whales are groups and private companies.

These groups also control a large amount of Bitcoin and other cryptocurrencies, and they include:

  1. Fortress Investment Group.
  2. Pantera Bitcoin Fund.
  3. The private financial institution.

This have become well-over millions of Bitcoins from the illegal goods exchange site, Silk Road, the darkweb which includes Mafia's, Cartels, and other innocent people using such cryptocurrencies like Monero.

The U.S. government shut down Silk Road because illicit items were being sold on the site, such as narcotics, weapons, ammunition, and even murder, but this rabbit hole runs deeper.

Silk Road, was a guy overwhelm by his internet exchange empire of darkweb activities and the private financial institutions along withe .gov law-enforcement moved in and attempted to shutdown cryptocurrency, but failed.

Silk-Road owner payed a heavy privates as scapegoat and this will be example everyone should learn from as a prime-detective ground rules swimming in the private financial institutions darkweb life style.

Private Financial Institutions and the governments who refuse to remove themselves from the Royal Empire ruling over the planet earth should be respected above all, because if you can not learn their rule book then you too will end up as Silk-Roads.

Do Not Blame the Private Financial Institutions owned by family-names worldwide and the governments who serve them, blame only yourself for not learning their rules unwritten in stone.

When the U.N. influenced U.S. Government shut down the site, ( "Silk-Road" ),  the crypto-community assumes it took control of over 144,000 BTC, which the U.S. Government proceeded to sell, so said.

Under Assumption


The U.S. Government made over $48 million from the sale of these Bitcoins, assumed.

When the government sold off Bitcoin that it had taken control of, the current market price of a Bitcoin was only $334.

If U.S.Goverment waited a few more years to sell the, the U.S. government would have made billions of dollars, instead of only tens of millions.
Impact of Whales on the Market is-was minimal do to this lacking.

The activity of Whales can have a major impact on the cryptocurrency markets, including individual crypto prices and market capitalization.

When Whales make trades, they often do it for tens, or even hundreds of millions of dollars at a time.

Massive cryptocurreny selling or buying can lead to sudden significant price shift changes.

When a massive buy order is placed it moves the price of a cryptocurrency way up. This signals the market that the particular asset is in higher demand.

When Whales create a massive sell order, the price can go in the exact opposite direction because it sends the opposite signal to the market and causes the asset to look like it is being unloaded.

Basically, Whales make major buys or sells which influence the market and causes a cascade of buy or sell orders.

It is estimated that approximately 40% of all of the Bitcoins are held by roughly 1000 people.

With so few people holding almost a majority of BTC, any significant buy or sell from these giant investors could tip the Bitcoin market in either direction.

Potential for Manipulation:

The fact is a high percentages of cryptocurrency market traders held by a select few Whales makes some people fear that cryptocurrencies are ripe for manipulation like stealing candy from a child.

Even if just a few Whales colluded together to create a massive sell order, they could drop the price of a certain cryptocurrency dramatically. Then, they could all buy back at the reduced price and take cryptocurrencies from the so-called “minnows.” 

Minnows are people who only hodl a small amount of cryptocurrencies.

Debates cryptocurrency community regards manipulation is a common topic not making cryptocurrency organic.

People think cryptocurrency manipulation is very real, others thing it isn’t, and others still, think that it might be real, and it all does not matter that much.

Regardless of opinions cryptocurrency markets go through intense boom and bust cycles.

In fact, the price swings in cryptocurrencies are so intense that they make cryptocurrencies one of the most volatile assets in the entire world, and therefore, one of the riskiest to trade.

Significance of Price Swings Caused by Whales:

In its Nine -to- Ten year history, Bitcoin has gone through tremendous price swings.

The most recent price shift of Bitcoin dropped from just about $20,000 all the way down to an estimated low of $9,000, losing over 50% of its value in a matter of weeks.

Despite the dramatic “price crashes” that Bitcoin and other similar cryptocurrencies go through periodically, many recover extremely quick.

In late summer 2017, Bitcoin dropped from $5,000 to about $3,300. 

Next Bitcoin quickly rebounded; going on to make new all-time highs afterwards.

This is a major pattern with cryptocurrencies when they crash, recover, and surpass the value that they had when they crashed.

People often as this question:

 Just exactly how much does any manipulation or activity of Whales matter?

It seems the answer is that this does impact cryptocurrencies on the short term, but in the long run, cryptocurrencies have a pattern of shaking off any such influence.

What About Whale Holding?

Whales make large trades to make short-term gains, others like to “hodl”.  The Winklevoss twins are the perfect example of Whales who like to hodl.

Cameron and Tyler Winklevoss

Cameron and Tyler Winklevoss have not sold a single Bitcoin since they purchased $11,000,000 of Bitcoins.

This followed the payout they received from Mark Zuckerberg over the Facebook intellectual property theft lawsuit.

It is highly likely that many other Whales are also holding on for dear life.

Purported by high level colleges of Cameron and Tyler Winklevoss that the banker family-names gave them both 100% faith that cryptocurrencies will be worth a lot more money in the future.

The Twin Whales hodl and not selling their coins, reduces the amount of overall coins there are available to be purchased on the market.

This upward pressure on cryptocurrencies and push prices up dramatically.

Fewer cryptocurrencies that are available, the more scarce they become.

Scarcity makes prices higher and this is the reason why assets like diamonds and gold have reached higher prices on markets.

Essentially, Whales holding large amounts of cryptocurrency contribute to increases of crypto-assets over time.

Cryptocurrencies such as Bitcoin and Ethereum have been rising steadily for years.

If Whales decide to sell all at once, then it could cause a very serious market downturn.

New Whales could even be created by such an event.

Whales Concluded:

Whales are a significant part of the cryptocurrency environment.

Their actions can cause strong reactions in the market.

Some Whales make frequent trades that are high volume.

Other Whales simply accumulate as many cryptocurrencies as they can and hodl.

Regardless Whales are holding or trading, they affect the market, regardless.

Whales holding creates scarcity, active trading creates volatility.

Many hedge funds and wall-street investment groups and trusts are just beginning to trade cryptocurrencies.

This is largely due to the fact that Bitcoin futures were recently launched by the CME and the CBOE.

Hedge funds and investment banks begin picking up cryptocurrencies creates a new class of Whales  as they are the Ghost Whales in cryptocurrency.

Trading volumes shift tremendously and more true if an ETF gets approved for Bitcoin or other cryptos.

Multiple attempts have already been made to get ETF approved, but they have not solidified at present.

Many large institutional investors are beginning to enter the cryptocurrency markets and become Whales, many others are missing the opportunity.

 JP Morgan Chase & CO. bank opposed to cryptocurrency trading.

The CEO of JP Morgan Chase, Jamie Dimon, even threatened to fire any of his traders who attempted to trade Bitcoin.

Were Jamie Dimon and the many other notable cryptocurrency critics were right or wrong on their opportunity to become Cryptocurrency Whales by investing large amounts of money early on in the cryptocurrency craze.

If cryptocurrencies does not fad then the critics will be proven right.

If Cryptocurrency continue to grow and become an asset class, then the Whales will become even wealthier, and will control an even larger portion of the crypto sea.

- Rothschild's, Rockefeller's, Morgan's, and their Cabal of banker family-name are already secretly in the game to own all

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