RE: Ever Wanted To Know What Crypto Whales Invest?
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Hey brother, once again nice article, I really enjoy your posts. DeBank I discovered a few months ago myself and it is indeed a great resource!
I agree that checking the public holdings of wealthy individuals and funds like Grayscale, etc is worth checking to say up to date with public sentiment. It is only one piece of the puzzle, but still a valuable one. A few other things to keep in mind, too:
-Whales almost always have multiple wallets for both privacy and security reasons. I am a whale myself and I have at least 16 wallets if I recall, maybe 20. Most larger whales probably have more than me.
-Many whales keep a lot of their holdings private with a 3rd party custodian, and the public wallets that you see are actually just their (much smaller) hot wallets. So often what we are seeing are actually their much smaller and more speculative investments that they need more instant access to, in case they need to buy or sell quickly. Some whales also just take 1-2% and throw it in a hot wallet to do pure degen gambling too.
-Grayscale and other funds that manage others' money, may not always have the most optimal investments, as it is a much more complicated process to dump current assets (or add new ones), even if they no longer believe in them. For example, they own a large amount of Ethereum Classic, which has been a compete disaster and total failure with no future in sight. They also have much more pressure to not lose money rather than maximize gains.
-many whales only hold huge amounts of certain coins because they are actually involved with developing the project, were given a bunch for free for an endorsement, or are a silent investor behind the scenes.
-Almost all experienced and corporate whales hold BTC and ETH, and it is usually a significant percentage of their portfolio. This new wave of brand new, inexperienced investors that hold 0% BTC or ETH are taking enormous risk.
And a quick related note: By the time many big companies have announced their support for a project, assume that they have already completed buying as much as they want for the forseeable future, not that a big purchase is forthcoming.
But yes, what others invest in is and always will be an important metric! Thank you for the article! Always do your homework thoroughly folks! :)
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Wow what an insightful comment. Thanks for sharing as I personally am still learning each day even after so many years in crypto. I won’t prey into your investments anymore than you willing to share but I have heard whales have their own group of cohorts collaborating to make or invest in the next best assets all the time to continue growing. I think I have seen it in play personally and think that’s all part of the game. Either way again thanks for sharing your insights.
No problem, I am glad that we can all learn from each other! I have learned plenty from your posts too, you summarize things very well. there are SO MANY projects now that quality summaries are needed! :)
Well, I will say that I think a lot of whales dont like to reveal themselves, and that goes for myself too, I am only even mentioning it because this account is 100% anonymous and has no link to any of my personal info (and is used with a locked down PC + VPN + encryption + 3rd party connection + compartmentalization, so my anonymity is safe). I have never told anyone in real life, not even my best friend or parents know. Basically, I worry that people will treat me differently and that I will attract people with ill intent, plus I just dont want all of the attention, I like peace and quiet. The other whales that are out here wearing these goofy gold chains and holding big stacks of money taking 300 photos of themselves and bragging all of the time, I find to be very insecure and extremely unlikable people. They are also often DESPERATE to famous. I would hate fame, so I dont get it, but man it must be a miserable way to live to chase fame all the time, kissing people's asses because you need to use them for their contacts or something, ugh, no thanks! To me money is simply a tool to be used to obtain greater freedom. Anyway, sorry to ramble, I just do not relate at all with the Western culture these days, everyone is obsessed with fame and more broadly hedonism, and since 99.999% of people dont become famous, almost everyone is miserable it seems. Hedonism can only end 1 way if a person persists on such a path: eventual disappointment and misery.
About whales manipulating the markets, yes it does happen. The market caps of many of the popular coins are getting to be so huge that the number of whales that are able to move the markets, even with a small group of them, is getting smaller and smaller though. I know that there are telegram pump & dump groups that do P&Ds that last 1-2 minutes on some smaller low volume coins and that is a problem also. This happens in every financial market though, it will always happen and there is really no way to stop it, so I have accepted this reality.