Of course, this is a basis for contrarian investing traders, an investment school of thought which springs from Baron Rothschild, an 18th-century British nobleman who is credited with saying that “the time to buy is when there’s blood in the streets.” Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon.
Research firm Weiss Ratings reports at the time of price recession of January and February 2019 100 of the largest wallets accumulated an additional 150k bitcoins. They did this most likely to sell at the peak and then buy back in at a lower price as the analytics firm .
Lesson 2: Whales are not a significant threat to crypto prices
In their webinar, “Who are today’s and Cash Whales”, categorized whales into three different categories: criminal whales, early adopter whales, and whales.
Among the findings is that Cash whales on average hold about 250% of the crypto that regular whales hold, indicating a higher concentration of the .
Crypto Whales collectively own less than 10% of the current total market capitalization of . Even though a coordinated sell-off would have a downwards price movement, taking into consideration that up to 2.5 million change hands every day on exchanges. Most whales selling expect to have a lower entry point- buying cheaper and try to increase their holdings. Quoting the same report findings, ChainAnalysis argues that “criminal whales” who have made their money from darknet markets, don’t actively sell like whales, which is why they use their wallets only when it’s necessary avoiding to leave any tracks.
Despite the decline in demand from retail investors, crypto whales have still been investing via over-the-counter (OTC) deals, as explained by a . At the same time Circle, one of the leading OTC desks that they handled more than 10,000 OTC trades in 2018 and a monthly volume of $2 billion.
On the other hand, a report from explained that April’s 2019 massive pump above the price of $5,000 is due a 20,000 buying spree executed simultaneously on , Kraken, and Bitstamp.
Analysts believe that whales now will have a larger incentive to begin spot to influence the price on crypto exchanges.
Lesson 3: whales participate in the funding of new projects via IEOs and donate in charities
Through analysis of recent trades, we have discovered whales which are investing in IEOs. For example whales apparently were recently drawn to a investment-based services called Roobee which utilizes AI and offers transparent public verifiable statistics to help investors build and manage investment portfolios.
The startup recently announced that came from a prominent whale . Characteristically the whale signed the transaction with the message “In RooBee I Trust” and at the same time Roobee co-founder Artem Popov told that ’s goal is to “provide retail clients with the same investment opportunities and level of security as the largest financial market players, wherever in the world they are and no matter what their capital stands at, even at $10.”
It’s important to mention that whales are not only looking for investment opportunities, but they are also supporting charities, with the most recognizable example being the Pineapple Fund which has donated $55 million to charities because they believe that ”once you have enough money, money doesn’t matter”.
The Pineapple Fund was an experiment in philanthropy with wealth and more than 10,000 applications for support from different philanthropies were received. Their website anonymously listed various whale donations and another major giver in the area is the charity operated by .
Lesson 4: It’s not an easy journey to dump stolen from whale hackers
The notorious hacker who has pilfered more than 100,000 from Bitfinex back in 2016, has recently started to transfer 550 of the stolen that were not recovered thus far. With so many eyes looking at the stolen crypto, a Reddit user with username ‘Jankeldidi’ has that stolen crypto worth nearly $3 million was in motion on April 2019. The has been transferred to multiple addressed as indicated in . Many Reddit users have commented in the post that this could have been an inside job or have expressed their concerns in regard to the hacker identity which coincidences with the NY AG decision in regard to Bitfinex and Tether bookkeeping challenges.
Of course, those are speculations and not any such proof has been discovered, nor the writer adopts such opinion.
As summarized in Adamant Capital’s published on April 18, whales have increased their accumulation of . If we were to capture a current market sentiment in one word, it would be “hope” as analyst Tuur Demeester recently wrote. The same report also suggested that additional risks which could affect prices could be exchange hacks, technical failures, macro-economic downturn, secondary capitulation, forks, and a potential regulatory crackdown.
Market fluctuations shape asset ownership from “weak hands” to “strong hands” who can handle volatility and price downturns. The progress of financialization will drive more institutional investors in the industry with notable leaders to deliver among others: Nasdaq futures, and CME futures. Goldman Sachs has also invested in crypto custodian BitGo, while Fidelity Digital Custody Services has already undergone a soft launch.
Whales seem to HODL and committed in the development of the industry for the long term again.
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Published at Thu, 09 May 2019 19:36:22 +0000
