🐋 The Role of Whales During a New Token Launch on Binance
When a new cryptocurrency is launched on Binance, many traders rush in hoping to catch early profits. However, whales — large investors who hold significant amounts of capital — often play a dominant and risky role in this early phase.
Below is an overview of how whales influence the market and how you can protect yourself---
. Price Manipulation●
Whales usually accumulate large amounts of the token before listing — either through pre-sale rounds or Binance Launchpad.
At the moment of launch, they quickly sell their holdings to secure massive profits. This causes the price to crash sharply, often catching small traders off guard.
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. Market Deception●
Whales often initiate a "pump" by buying aggressively during the first minutes of launch, making it appear that the price is booming.
Once enough retail traders jump in, they initiate a "dump" — selling all their tokens at the inflated prices. This leaves new traders holding an asset that has lost much of its value.
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. Exploiting High Demand●
During the hype of launch, many new traders enter with fear of missing out (FOMO). Whales use this demand to sell at overpriced levels.
As excitement fades and the buying pressure disappears, the price falls — resulting in instant losses for latecomers.
✅ How to Protect Yourself from Whale Activity
🕒 Don’t buy immediately at launch:
Wait at least 30–60 minutes for the price to stabilize and volatility to cool down.
📉 Monitor trade volume:
If you see large sell orders, that could be a sign whales are exiting.
🧠 Stay rational:
Avoid emotional trading or falling into FOMO traps.
💰 Invest a small amount
Limit your risk during high-volatility periods by starting small.
🎯 Conclusion
> Whales profit at launch... small traders lose in the hype.
To avoid being on the losing side, observe the market patiently, avoid impulsive decisions, and always trade with a clear strategy.