BinanceAlpha$1.7MReward
Whales in cryptocurrencies are a bright side despite the common negative image about them, especially when viewed from broader perspectives:
1. Providing liquidity
Whales are often a primary source of liquidity in the market. Without them, executing large trades can be difficult without significantly impacting the price.
2. Temporary market stability
When a whale buys large amounts of a currency, it can create temporary confidence in the market and encourage others to buy as well, creating a short-term bullish wave.
3. Alerting the market to opportunities
Whale movements can alert smaller traders to coins with potential, as some track large wallets to spot opportunities ("copy whales").
4. Supporting promising projects
Some whales invest in emerging projects and financially support development teams, helping to advance blockchain and web 3 technologies.
5. Indirect market regulation
When liquidity is distributed among several whales rather than a single whale, it can create a kind of competitive balance, reducing the likelihood of absolute manipulation.
✍️ However, the dark side is always present:
- Price manipulation.
- Pressure on small investors.
- Creating FOMO or FUD (fear of missing out or fear, uncertainty, and doubt).
But in the end, the presence of whales is a natural part of any large financial market, just as it is in stock or gold markets.