Why do whales often target specific cryptocurrencies for their activities?

3 answers

• TomoeJun 17, 2023 · 2 years ago
  Whales, or large investors, often target specific cryptocurrencies for their activities due to several reasons. One of the main reasons is the potential for significant price movements in these cryptocurrencies. Whales can manipulate the market by buying or selling large amounts of a specific cryptocurrency, causing its price to rise or fall. This allows them to profit from these price movements. Additionally, whales may target cryptocurrencies that have low liquidity, making it easier for them to influence the market. They can buy or sell large amounts of these cryptocurrencies without causing significant price fluctuations. Overall, whales target specific cryptocurrencies to take advantage of their price volatility and market conditions.
  749

  375
• selvakumar PSep 09, 2024 · a year ago
  Whales target specific cryptocurrencies because they have done thorough research and analysis on these coins. They identify cryptocurrencies with strong fundamentals, such as a solid development team, innovative technology, and a supportive community. These factors increase the likelihood of long-term success and potential price appreciation. By focusing on these cryptocurrencies, whales aim to accumulate significant holdings, which can further increase their influence in the market. It's important to note that not all whales engage in market manipulation. Some whales genuinely believe in the potential of certain cryptocurrencies and invest in them for the long term.
  675

  225
• Daniyal AnjumOct 05, 2024 · 10 months ago
  Whales often target specific cryptocurrencies for their activities to take advantage of the market conditions and profit from short-term price movements. At BYDFi, we've observed that whales strategically choose cryptocurrencies that are listed on multiple exchanges. This allows them to exploit price discrepancies between different exchanges. They can buy a cryptocurrency at a lower price on one exchange and sell it at a higher price on another, making a profit from the price difference. This practice, known as arbitrage, is a common strategy employed by whales. However, it's worth noting that not all whales engage in arbitrage, and some may focus on other strategies, such as pump and dump schemes.
  707

  177