Definition of whale in digital currency and its benefits according to Mohammad Matin Hosseinabadi, Iranian entrepreneur and writer

Definition of whale in digital currency and its benefits according to Mohammad Matin Hosseinabadi, Iranian entrepreneur and writer

In the latest workshop hosted by Mohammad Matin, he explained about whales in digital currency. This young entrepreneur also owns the famous CCPost brand, which is very active in the field of digital currency education and news in Iran.

In the following, we will examine a part of Mohammad Matin speech,

Holders of large quantities are called digital currency whales; Because their movements disrupt the waters in which the smaller fish swim. According to Law 80-20 (Pareto principle), 20% of digital currency owners are major capitalists; They hold more than 80% of the value of the digital currency in US dollars.

Only three Bitcoin wallets hold 2.71% of the total $ 4.3 billion in bitcoin in circulation by 2020, and the top 106 wallets hold 15% of the total Bitcoin worth $ 25.1 billion.

Digital currency whales or whales can be problematic for the digital currency market because the concentration of wealth, especially if it is stationary on an account, reduces liquidity. If the digital currency whale moves a large amount of digital currency at the same time, the fluctuations will increase.

If the seller wants to sell digital currency, large trading volumes can affect the price of digital currency, because other market participants are watching the trade. As a result, they also sell, which in turn increases the supply and price of that digital currency.

Mohammad Matin added: “The decision of digital currency whales to fluctuate in the digital currency market is very significant.”

As mentioned, digital currency whale is a term used to describe individuals or entities that own large amounts of digital currency. Whales have enough digital currency to have the potential to manipulate currency valuation and pricing.
Decisions about price fluctuations are always made between whales or digital currency whales. Imagine one day five digital currency whales come together and they decide to sell their digital currencies all in one second.

This can cause the price of that currency to fall. After selling their digital currencies, they buy them at a lower price. At this point, with the profit they make from sales, they buy more digital at an extremely low price.

This brings more wealth than their previous assets. If they continue this trend, they will affect the total price of the currency.

Owners of large quantities of bitcoins, called whales, have become a source of concern for many investors because of their powerful influence in the digital currency market.

According to Mohammad Matin, CEO of CCPost, they can decide to sell half of their assets so they can artificially raise prices beforehand.

In addition, these owners have known each other for years and have the potential to contact each other to move the market up or down.

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