Satoshi Nakamoto. You’ve probably come across this name before, even if you’re new to the crypto industry. Why are people like him called crypto whales? 

Who are crypto whales? 

Crypto whales are very, very rich people who have made their fortune through early investment, mining or other means. They can influence the market by buying or selling large amounts of assets and thus cause price fluctuations by having significant cryptocurrency capital at their disposal. These investors emerged back in the 2010s, when cryptocurrency cost pennies. Over time, their fortunes have grown significantly. Therefore, the crypto community has labeled them as “crypto whales”. 

But how much crypto do you need to own to be labeled as a whale? There isn’t really any specific amount of crypto assets. If a person owns a significant percentage of the total supply of a particular cryptocurrency and influences the price movement by making transactions, then they are a cryptocurrency whale. 

But who is Satoshi Nakamoto, and what is his role in the market? According to crypto expert Kashif Raza and analytics platform Arkham, Nakamoto is believed to own approximately 1.1 million BTC: this definitely makes him (or them?) the largest cryptocurrency whale in the world. Satoshi’s identity is carefully concealed and no one knows who is behind the alias. It is believed that if his identity becomes known, the market will quickly destabilize. This is because the actions of the Bitcoin creator will begin to be closely monitored. 

Tesla and MicroStrategy are also cryptocurrency giants. When Tesla announced a $1.5 billion Bitcoin purchase last February, the price of the major cryptocurrency hit a new all-time high, surging 15% to $44,000. 

Some members of the cryptocurrency community like to blame whales for major price drops and market manipulation. But in reality, there have been, are, and will be whales in all financial markets that can influence price. Whether we want it to or not. 

Why is it worth monitoring crypto whales? 

Whale tracking can be a very rewarding endeavor and provides several benefits to investors and market participants: 

Understanding whale behavior provides insight into market trends, potential price movements, and investor sentiment. 

Identifying large trades or movements of funds by whales shows possible changes in the market. 

Whale activity often indicates momentum. This can be useful when planning to “enter” or “exit” a particular cryptocurrency. 

To put it simply: if you want to better understand where you should invest or what to sell/buy, track whale activity. But you shouldn’t blindly follow their lead. Always do your own research and don’t invest blindly in cryptos. 

But if you do want to track a whale, you can do so with tools like Etherscan and Blockchain.com. They allow you to examine and analyze transactions on the blockchain, including transactions involving large amounts of cryptocurrency. 

Services like Whale Alert monitor and report on significant transactions in real time, identifying whales. 

How do crypto whales stay anonymous? 

Staying anonymous with a huge amount of money is like staying invisible at 6.8 feet tall. And yet, whales manage to do it. But how? They use a variety of methods to protect their anonymity and privacy. For example, they reallocate their assets to different wallets. Or they use only privacy-oriented cryptocurrencies. Some use cold wallets to store their assets. And there are those who store their assets through trusts or offshore companies. 

Conclusion: is it worth monitoring crypto whales? 

Whale monitoring can help you get more information about the market and develop an investment strategy. However, it should be remembered that it should not be the main factor in decision-making, and you should not rely entirely on the actions of others. 

Do you think the anonymity of crypto whales is a threat to the market, or vice versa, an advantage? Leave your feedback in the comments below.