Anyone in the blockchain and Web3 game is familiar with the top project stakeholders collectively known as whales. But if you’re not part of this segment of industry participants, chances are, you don’t think too highly of them. But why?
When we hear about crypto whales, most of us immediately think of market manipulation and indeed the history of crypto is full of anecdotes about whales manipulating the market.
The first one to come to mind is the giant pump of 2017, where many people bought Bitcoin on a massive scale and dumped them at once.
But this is an inaccurate and one-sided representation of how these market participants impact the crypto world.
It’s true, blockchain and Web3 whales tend to hold a large percentage of the supply of a particular coin or token. And just like the mammal, crypto whales are the biggest animals in the ocean — which means they hold a lot of power.
But a large part of the negative perception is the lack of education about their role in the structure.
We fear what we don’t understand, and that causes misinformation and negative feelings to grow and spread.
Here’s the thing, crypto whales, like their animal counterparts, are an integral part of the blockchain and Web3 ecosystem. The fact is, crypto whales are essential for the industry to grow and succeed long-term.
You might think whales are simply wealthy people who like to throw their money at a project to tap into every potential profit stream.
Additionally, these early adopters tend to take the biggest risks and have the most to lose. All these characteristics are natural phenomena of the free market.
Naturally, they are more invested in the project, but not just in a monetary sense. They are also the people who put in the time and research to make the sound decisions that can impact a project.
By taking this extra time and effort, whales are often in a great position to understand what are the factors that make a project a winner in the long-term.
It is time to stop demonizing whales and picturing all of them as bad actors.
On a large scale, whales invest their time and money in projects that can have a positive impact on people’s lives around the globe. They contribute to the success of amazing projects, even though we don’t necessarily see their names on top of a list.
More immediately crypto enthusiasts, especially those just starting out, can take advantage of the experience they have to share by following their moves, tips, and learnings.
At the end of the day, whales are an inevitable part of the blockchain ecosystem and are here to stay.
We need to take more time to understand the vital role they play.
When we start researching how whales impact the blockchain world, there are tons of articles with a focus on simple market manipulation and how the price of a project will go up and down because of whales. Like in any industry or market, bad actors do exist.
Yes whales across all cryptocurrencies may move the price around, but that is ultimately not what will determine the success or failure of a project in the long-term.
What matters are the project’s fundamentals: their leadership expertise, token economics, values, and team vision.
All crypto enthusiasts should take these factors under consideration when choosing to commit to a project long-term.
This is how ANY enthusiastic crypto adopters can become a whale — do the appropriate risk/reward analysis and dive in!
On the flip side, when a project is at risk, whales will decide to pull out to protect their pockets.
Usually, when this happens, whales are acting on information that leads them to believe a project may have internal issues that will contribute to the project’s ultimate failure. This is the same in any market.
As in any market shift, whales act on the information available to them. But with the internet so full of misinformation and disinformation, there is always a risk that whales will make decisions that can negatively impact projects and disrupt the peace of mind of remaining holders.
It’s crucial that these industry stakeholders have a safe space to go to get together and discuss their favorite projects without fear of giving up their identity, being hacked, or being among other people less enthusiastic about the industry.
The WhaleRoom community was created by crypto enthusiasts to serve the needs of others through proper guidance, knowledge sharing, and education in order to shorten their learning curve and train their subconscious mind to only engage with projects that have strong fundamentals.
Its goal is to create an environment safe from shills, moonboys, bots, and spams. Through this vehicle, serious holders and whales have the opportunity to discuss and share valuable information/ideas with one another to help make smart decisions on which projects to get involved with and support.
Want to know more about how WhaleRoom is changing the conversation on crypto communities?
At SENTR3, we offer clients tailored token-gating services to house communities, events, and offers. Head over to SENTR3 to discover how you can adopt a native Web3 solution to better serve your loyal holders.
When our team started building the core infrastructure that powers WhaleRoom, we decided to create a community social token for early adopters of the platform so they could access dedicated community rooms at launch where feedback and discussion could occur.