Crypto whales are exiting

xuanling11
2 min readJan 8, 2023
Photo by Thomas Lipke on Unsplash

Crypto whales are running away.

This is the first time ever to see whales are not buying back during the bear market.

What happens and who are those whales?

I asked ChatGPT about whales and here is what it said:

Crypto whales are individuals or organizations that hold a significant amount of cryptocurrency. They are called “whales” because their large holdings can have a significant impact on the market, similar to how a whale can affect the ocean. Some crypto whales are early adopters of a particular cryptocurrency, while others are professional investors who have made a significant investment in the asset. Because they hold such a large amount of a particular cryptocurrency, crypto whales have the potential to influence the price of that asset through their buying and selling activity.

Here are my personal experiences with whales.

There are three primary sources of whales: criminals, institutional investors, and individual investors.

Criminals

Yes, although they were early adopters, those people used crypto mainly to laundry money and keep their wealth within crypto to avoid possible tracking from governments.

Hackers who steal money from others are part of this category.

Such as the one who stole money from FTX exchange right after it collapsed and used Tonatord Cash as a mixer to dilute the possible addresses that can be traceable into unnamed new addresses.

Many of those whales could hardly move crypto from their wallets unless necessary.

Institutional investors

Those investors are a handful with cash and are adopting the new normal of the crypto environment, like 2021 and trying to catch the late train. But they got the advantage of becoming professional investors and with new regulations to allow them to dominate the space as quickly as possible.

Unfortunately, crypto does not work as traditional finance does. The regulation is too slow and lacks meaningful guidance, resulting in massive losses from institutional investors in 2022 and many funds from scammers like FTX.

Individual investors

Those people who were either lucky or had some fortune to predict that possible future got their jackpot.

They were either programmer who joined the space early and developed to help blockchain or some gamers who were involved with the space.

All of them are exiting crypto in this bear market.

We cannot predict the future, but I felt something is about to change from this point forward…

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