Whale watching on Spiking
Definition
Whales are known as market movers in cryptomarkets. Spiking defines them as cryptocurrency founders, miners, or anyone else with access to key information before it’s made available to the public.
Whales and their impact
As in traditional markets, in which Spiking has provided a much-used solution to fill the void of information asymmetry in the stock markets, Whales are responsible for significant price action in crypto markets.
In fact, the current Bitcoin price slump of early 2018 has been attributed by some sources to the affectionally termed ‘Tokyo Whale’. In essence, the trustee of troubled Mt. Gox exchange liquidated more than $400 million worth of Bitcoin, with significant price dips in Bitcoin prices during recorded movements of the funds. The price-dip blame on this particular Whale has its detractors, but the coincidence is uncanny, leading some to speculate there may be a larger syndication at play.
Considering that a small syndicate could in fact move prices of a >$150 Billion asset like Bitcoin, it cannot be understated how much more token/coin founders with more than 30% in ownership can move their asset prices.
Information Asymmetry in Crypto
With the large number of exchanges ( >190) in the crypto markets, comes an opportunity to record gains with news of a listing, multiple times for the same token/coin. For the average trader and investor, it is not possible to know when or where a token listing will take place in advance. In fact, most traders are only able to purchase at a premium once a token is listed.
During the Bitcoin Cash price jump by 700% in end 2017, it was alleged that insider trading was discovered on Coinbase. Prior to the Coinbase listing, Bitcoin Cash prices spiked significantly on all exchanges, undoubtedly by huge buy orders which moved the entire market. Thereafter, many traders who ‘chased the pump’ lost significant sums, when the Bitcoin Cash price plummeted.
Whales can be tracked
Tracking whale trades is a valuable barometer which is lacking in the cryptocurrency market today. Spiking is here to introduce a platform that will fill this market void and transform the way traders interact with the market, helping traders at all levels to make better decisions.
It is Spiking’s goal to even out the playing field and provide realtime information on Whale trades.
Trade with the trend. Follow the Whales.