Crypto Academy / Season 3 / Week 1 - Homework Post for professor @wahyunahrul || Whales-The Drivers Of Cryptocurrency Value || by @humblesoul

It's a privilege to participate in this week's class. Sincerely, this weeks lectures has explored my understanding of "Who the whales are, and their effect to the value in cryptocurrencies", Thank You professor @wahyunahrul for the well-detailed lecture. Here is my entry based on this week's homework task.

These are individuals or group of people who has a huge capital or amount of money to manipulate cryptocurrencies in it value, This individuals who are inventors can, with their capitals own, buy or stock-up huge quantities of crypto coins which would influence the market.

EFFECT ON SMALL INVESTORS

Since most cryptocurrency has a decentralised platform, An action or decision of a Whale who invested or trade with huge amounts of money on a cryptocurrency can't be analysed, because a whale might decide to buy or trade (Accumulate) on a particular crypto coin with it huge influence which such decisive act would drastically give a tremendous signal in the market. Same would apply if the whales decide to sell-off (Distribute) it coins to yield more value which would also reflect and at the same time create a signal of loss or gain in the cryptocurrency market.

Therefore, to this effect, a small investor is expected to regularly analysis the cryptocurrency market so that when a whale who as mentioned above, accumulate by investing on a said coin such small investor would queue up and invest with it small capital but with Caution because such whale might decide to distribute (sell-off) at a given time without a notice to the small investor which would turn to be damaging or loss to them but of more value or profit to the Whales, If precautions are not considered by the small investo.

EXAMPLE OF WHALE EFFECT

Image Source
BITCOIN
This decentralised virtual cryptocurrency which was launched in the year 2009 by Satoshi Nakamoto (Although the actual owner is anonymous).Recently, there have been a dramatic changes on this particular coin although after Elon Musk (huge investor) tweet on the coin and his investment on it, it raises and more value was added.

Screenshot source
Based the screenshot above, On May 2021, it was realise that a Wealthy whale has moved a huge amount of stocked tokens or coin 7,970 BTC from the market, such huge withdrawal had a great effect on small investors because most of the small investors were unaware of the whales mindset and that resulted in lossing from their investment.
The screenshot below should how the coin drastically fell and other analysis;

Based on the downtrend, it indicates the falling rate of coin made by the anonymous whale and the distribution indicates when a small investors was expected to sell-off and gain profits.

WILL WE BE ABLE TO TAKE ADVANTAGES OF THE EXISTENCE OF THE WHALE THAT IS SO FEARED?

Fear of Missing out (FOMO) as a small investors shouldn't be part of us this is because Whales who invest on cryptocurrencies are sometimes known to be anonymous and when something is said to be that, that means there is no possible way to traces such individuals therefore this whales has their own business to influence the value of the cryptocurrency meanwhile the small investors would possibly join by analysing the bullish and bearish sectors that do help in any cryptocurrencies market and investment, Although it might be fearful but still a small investor can flow along with the whales but with cautions.

FIND AN EXAMPLE OF A WHALE'S CYCLE ON A CRYPTOCURRENCY CHART, AND DO A DETAILED ANALYSIS OF THE PHASES IN THE CRYPTOCURRENCY CHART (DON'T TAKE THE CRYPTOCURRENCIES THAT ARE RANKED IN THE TOP 10 AS EXAMPLES)

Here is the top 10 cryptocurrencies chart:

Screenshot from https://coinmarketcap.com/

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The screenshot chart above has some phase which are you going to analysis, they include:

PHASES	DESCRIPTION
Accumulation	Time to Buy
Uptrend	Buy More
Distribution	Profit time
Downtrend	Buy and Exist

ACCUMULATION PHASE
This is a period when Whales do accumulate huge amount of coins or tokens, during this period, price movements of cryptocurrencies which are been accumulated flows slowly. At this time, small investors with their small amount also gather or accumulate the clins and stock-up.

UPTREND PHASE
This can also be referred to as the Step-up stage, where the coins seems to be increasing in value, in this, raising and falling of the coins would be indicating in the chart.

DISTRIBUTION PHASE
This is the period where profits are made, huge and small investor will sell-off their coins and earn the value from their investment on the cryptocurrencies.

DOWNTREND PHASE
This is a period when whales removes or withdraw their investment (coins or token) from the platform after earing their profits thus, such huge withdrawal would create a big effect in the crypto market which was invested on and some of the samll investors might be caught unawares which would lead to loss.

IF YOU ARE A “WHALE ”, WHAT CRYPTOCURRENCY WOULD YOU CHOOSE TO INVEST OR TRADE (EXCEPT THOSE THAT ARE IN THE TOP 10), EXPLAIN WHY YOU CHOSE THAT CRYPTOCURRENCY

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As a Wealthy Whale, I would invest in TRONX, This cryptocurrency was launched in 2017 by Justin Sun, this coins run 2,000 transactions absolutely free in seconds.
TRONX is a cryptocurrency that has be overlooked by whales but for me in position of a whale, I would invest heavily on the coins because I know it would yield more profit and value to me after the investment. If there is another whale that could invest on this coin possibly by now, Tronx would be among the top 15 in the cryptocurrencies market chart.
Currently, I have started investing in this coin and i am also introducing such idea to other new users in the cryptocurrency market. With income, capital, i been a whale would do wonders in the coin platform.

DO A KIND OF ANALYSIS AS A WHALE WITH THE PHASES THAT I EXPLAINED EARLIER ON THE CHART OF YOUR CHOSEN CRYPTOCURRENCY, SHOW WHERE YOU WILL START BUYING THE CRYPTOCURRENCY, AND EXPLAIN HOW YOU WILL TAKE PROFIT

TRONX SCREENSHOT:

From the chart, i understand that now is the period where as a whale to accumulate the tokens or coins, if I, with the use of huge capital do so, it would add to Uptrend the coins and possibly lead up to a distribution stage.
From my earlier explanation, Accumulating the tronx now is a good decision, hopefully with a huge capital, it would reflect on the market and draw more investors or whales to the cryptocurrency thereafter yield a valuable profit.

For example if as a whales, I invest, buy or accumulate with the amount of $400M, i might at the end of the distribution earn x2 of the investment ($800M).

CONCLUSION

With the study of who and how the whales affect the cryptocurrency and the analysis conducted in this homework task, I have fully understand their standa in the cryptocurrency market. Finally, as a small investors The Fear of Missing out (FOMO) which might come from a Wealthy whale should not be my thoughts but rather am expected to analysis the market properly before investing on any coins.
Thank You @wahyunahrul for that intense anf well organised lecture, i hope to learn more from you next week.