The great event of the crypto world: The investment of big investors (Whales) - Advantage or disadvantage?
As the recent major event in the cryptocurrency market, the increase in investments from big investors (Whales) is considered significant. Does this event enrich the market or generate new fears? Letโs explore the answer to this question.
Investments from the 'Whales' are like two sides of a sword. They can become benefits or drawbacks depending on the current state of the market, the intention of those 'Whales', and the reaction of small investors like us.
Whale Investment: Advantages (The Bright Side)
Price Appreciation & Confidence: When 'Whales' buy large amounts of a cryptocurrency, its price increases. This attracts new confidence and attention towards that coin in the market. For example, a tweet from Elon Musk a few years ago boosted the price of Dogecoin to its peak. Similarly, recently Ethereum was purchased in large quantities by a big investor, which generated the need to attract more investors to the market.
Market Liquidity & Attraction: The entry of 'Whales' helps market liquidity. This not only attracts new investors but also fosters the growth of overall market liquidity.
Long-Term Stability: Many 'Whales' operate with a long-term investment intention, providing financial security and stable value to cryptocurrency projects. It can be said that the fact that large investors held Bitcoin reserves in their wallets from the early days was a key reason for its success.
Whale Investment: Risks and Drawbacks (The Risks & Drawbacks)
Pump & Dump Schemes: Some malicious 'Whales' artificially inflate the price of a token (pump), causing small investors to buy in mass.
