Whales in Cryptocurrencies

Whales in Cryptocurrencies

Whales in cryptocurrencies refer to individuals that have large amount of a certain cryptocurrencies and they are able to manipulate the…

Dr. Clemen Chiang
Dr. Clemen Chiang
Photo Courtesy of Google Images

Whales in cryptocurrencies refer to individuals that have large amount of a certain cryptocurrencies and they are able to manipulate the markets. There can be Whales in different cryptocurrencies, different types of markets etc. For instance, in the stock market, Warren Buffet, Bill Gates or Elon Musk are considered Whales because of their great wealth and their standing. Different cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) would have their own Whales in their communities.


There is no fixed definition to how much an individual should have before it is considered a Whale. But looking at the BTC distribution table above, there are 879 wallet addresses that has over USD10 million worth of BTC which are definitely Whales.

With cryptocurrencies, Whales can have different purposes for holding large amount of coins. Perhaps the Whales strongly believe in the coin and wants to use them in the future. Or it could be that they are naturally holders and just waiting for the right time to cash out.

The possibilities are endless, but the most common purpose of Whales is to manipulate the market and bring in greater wealth for themselves.

How Whales Manipulate Markets?

Whales do it is by flooding the market to increase the supply of the coins which would cause the price to fall. Whales often do this to try to drive the prices low to a certain level. This causes some investors to panic and sell their coins. The price continues to drop and the Whales would buy back all the coins at a lower rate, increasing their total holdings of the coins.

Whales rinse and repeat this cycle and in the process, many holders of the cryptocurrency will be confused and frustrated because of the price will be fluctuating downwards but at the same time, trading volume increases which shows greater liquidity. There are many ways to see that the market is being manipulated, one of them is to see if there are any spikes in trading volume. Because of the complexity of this, do feel free to read more here.

Caution Action

Now that you know the impacts of the Whales, you should be cautious of their actions because it could potentially affect the entire market. There are individuals that watch these Whales by tracking their wallet addresses and watching for abnormalities.

A fresh perspective also came into play with Spiking, a crypto project that allows you to swim the Whales by mirroring their trades. This negates the harm that Whales’ manipulation does because now, you are following them. As a beginner trader, I feel that this puts me at ease because I know that my risk is lower and I am no longer losing out to big Whales!

by Dellanea Karina, Manager

Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.

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