Who Is A Whale in NFTs?
“Whale” is an NFT term describing an investor with a portfolio large enough to affect the market greatly. They constitute a small fraction of the entire market population, capable of manipulating the market through their large capital. They are entities, such as individuals, institutions, etc., that own a significant number of NFT tokens.
NFT Whale Sentence Example
- “An NFT whale just swept the floor of the new collection.”
- “The recent market crash was caused by a whale who withdrew 20% from a crypto wallet.”
Whale NFT Meaning Variations
- Whales
- Crypto whale
Whale NFT – Context
Whales, in the cryptocurrency world, are giant entities that create ripple effects among the small fishes. An NFT whale is a person in the NFT community with huge spending power. They include individuals such as Sam Bankman-Fried and Brian Armstrong. While entities like the Pantera capital Falcon global capital, amongst others, are considered whales.
They have the ability to artificially inflate or reduce the price of tokens. They can greatly promote or dissuade public interest in tokens. Whales can also Influence buying and selling trends amongst traders of tokens.
Whales are entities with a large amount of capital to splurge on any NFT they desire. Whales are investors in the NFT space with a large portfolio that make the others look like fries. Whales are organizations or individuals with a large amount of cryptocurrency.
Whales have an enormity of spending power. As a result of that, they can critically impact the values of tokens. Moreover, because they have more funds at stake, whales usually have more voting power.
Whales generally follow two action patterns when they seek to influence the market for their gain. They either create a ‘sell wall’ effect or capitalize on investors’ fear of missing out (FOMO).
The ‘Sell Wall’ Effect
Whales create this effect by initially putting up a huge percentage of their crypto tokens for sale at a price lower than other sell orders. This causes a general reduction in the prices of tokens, thereby raising a panic amongst smaller traders and investors. These small traders and investors then start selling their tokens at a lower price.
Later, the whales make a U-turn and buy the tokens sold at lower prices, therefore gaining even more power over tokens.
Capitalizing on Investors’ Fear of Missing Out
In this case, whales inflate the prices of tokens by offering huge buy orders. This action creates a ripple effect of an increase in the desire for tokens. Consequently, investors are eager to grab the opportunity to make quick profits, thus increasing demand.
The increased demand then allows whales to profitably sell their tokens at higher prices.
Every crypto trader must study the actions of whales to avoid unnecessary losses religiously. A good way to maintain an understanding of the actions of whales is to keep track of Accounts with highly valued crypto tokens by engaging in blockchain analysis.
Also, pay attention to whale alerts on social media platforms like Twitter. Subscribe to analytics platforms that better study crypto prices which will help you make well-informed decisions while trading.
