All You Need To Know About Crypto Whales geo news

 All You Need To Know About Crypto Whales geo news

Part of the popularity of crypto is the fact that you do not need a large portfolio to invest in it. Altcoins like Doge and Shiba have large communities around them and have low entry costs. What about investors with large amounts of money tied to crypto? Crypto wallets with a value of more than $ 1,000,000 are called “whales.” Because they can make a big "splash" in the crypto market. But, why is it important to pay attention to what crypto whales do with their money?

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All You Need To Know About Crypto Whales geo news

Crypto whales can take advantage of wash trading

Wash trading is a process of creating a fake market activity by trading between two cooperating parties. In theory, this “job” illegally increases the price of anything sold. It has also been illegal in the United States since the 1930's.

However, because cryptocurrency is fragmented, the bath trading is a viable game. The whale can send its crypto back and forth between two wallets to increase the value of the coin, and then sell it at an increasing price. If a whale sells a large amount of crypto, it can cause the value of the coin to drop significantly.

Ethereum, the second-largest blockchain in the world, will upgrade to a stakeholder proof model to validate transactions. This update, known as Serenity, will give crypto whales even greater impact. This is because randomly selected “regulators” place their coin as collateral for digging a blockchain with a stake proof model. If you have to offer a lot of coin, you are more likely to be selected as an author.

Tracking the movements of whales is important. So much so that there is an AI tracker called Whale Alert that quickly identifies major transactions in popular blockchains. They even have a Twitter account that will notify users in real time as this transaction takes place.

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