In a regular school, it's trendy to collect trading cards (for example, with superheroes).
They have no practical value, but some are considered 'rare', and everyone wants to get them.
Tommy is a high school senior who understands how the market works. He is a whale.
1. Tommy buys 'rare' cards in advance.
Before the week starts, he goes around the younger students and buys rare cards for $1.
Nobody knows what is happening, everyone thinks — ordinary exchanges. This is the accumulation phase.
2. He starts the hype.
On Monday morning, he starts telling everyone in the cafeteria:
“I have the last Hulk card! There won't be more! I heard they will be sold for $20!”
The crowd starts to stir. Everyone wants to grab it. Speculations begin.
Tommy starts selling his cards for $5, $10, $15 — and the schoolkids buy them, thinking it's an investment.
3. Tommy leaves with the money
When demand drops, he finishes selling and leaves. The cards remain with those who bought them at a high price.
They look at each other: "Who needs this now?"
4. The price drops
Already the next day, someone says:
“I will sell the card for $2, even though I bought it for $10 yesterday…”
But nobody needs them. Everyone has played enough.
Cards are no longer 'in fashion'. The price is zeroed out — it's a dump.
5. Everything repeats with a new card
In a week, Tommy starts a new trend:
“Iron Man card is the future!”
And everything repeats. Only the cards are different. But the scheme is the same.
Conclusion
Whales in crypto act exactly like Tommy:
1) They buy cheap while no one is paying attention
2) They create hype
3) They sell at the peak of hype
4) They disappear
5) They return with the same goals
Remember: if something cannot be eaten, used, or applied, then its only value is in someone's belief in its price. And thus, the price will be controlled by manipulators.
Don't be the one left with an expensive card when the game is over.
