In an interview, this month carried out by the trading platform of cryptocurrencies SFOX, the co-founder of Whale Alert, Frank Weert, said that the whales crypto can still have a profound effect on the price of the cryptocurrencies in this particular moment. However, he also added other details in his interview about the implications of possible extinction of the whales crypto.
He also specifically mentioned the need for anonymity for big bitcoin owners. Frank, said that 90% of the big whales holding large amounts of bitcoin are sceptical about security and use cryptomixer bitcoin mixing service or bitcoin tumbler before sending out btc transactions. This helps them in remaining anonymous and safe.
Overview of the effect of the whales crypto
Weert said that he was “very confident that the transactions of whales may have an effect, really deep on the price of a cryptocurrency in the market”, and that “to know where you are moving a cryptocurrency is a great way to predict possible fluctuations. In fact, Whale Alert is created specifically to track the movements of whales crypto and inform them to the community of cryptocurrencies in your set. (A transaction of whales, according to the definition of Whale Alert, which is any movement of the market of more than $ 50 million in assets at the same time). However, he also asserted that “eventually people will have to sell their currencies, and more people will be interested. Then, more people will be buying, and thus, eventually, the distribution of BTC will catch up a little more, and with luck, there will be fewer whales”. Even, said that fewer whales crypto would be a good thing for the markets of cryptocurrencies, and, in particular, Bitcoin. This is because it considers the distribution of best coins, the market would remain more stable because it would not depend on a few players to decide where to raise or lower the price.
Controversy over the whales crypto
The words of Weert on the influence of the whales in the market arrive shortly after Bloomberg published the results of a revised report controversial and hotly contested by professor John Griffin, University of Texas, and Amin Shams of the Ohio State University. In the report, Griffin and Shams assert that a single entity, a “whale crypto”, in Bitfinex could drive the price of Bitcoin when it fell below the average thresholds. So, instead of stating that there were several whales, or simply several investors, they chose to award it to a whale, lonely. That is to say, his study suggested that in place of thousands of investors to move the price of Bitcoin, only makes one large. Also, the report mentioned the influence of the Tether in the event of manipulation. However, Tether has rejected vehemently the claims, calling the article “flawed” and alleging that “the revised document is a repetition shameful of his predecessor, who still suffers from the same methodological flaws, along with the awkward claim that a whale is lonely can be responsible for the increase of Bitcoin in 2017”. Whatever it is, it is curious to see how the creator of Whale Alert believes that the extinction of these whales would be positive for the market in general, and as the same time, it unleashes a controversy so great about the level of influence they have or not these whales when they execute their market strategies. The following two tabs change content below. A degree in Liberal Studies from the Metropolitan University. Lover of innovation and a believer of the technology for the future.