The Crypto Whales Are Rallying Again: Where?

The Crypto Whales Are Rallying Again: Where?

Investing in cryptocurrency has always been a personal pursuit. As an investor, it is up to you to decide whether you want to take on the risks of the volatile market, whether you are comfortable with the macroeconomic landscape, and whether the tokens you have invested in stand any chance of success.

Of course, you can aid your prospects by integrating into various crypto communities like DeFi Million or staying up to date with guides, reviews, and reports on a buying platform like Cryptosoho. But the decisions you will make are ultimately made by you, and no one else.

This is why the concept of crypto whales – and how investors should react to them – is so intriguing. To sum up crypto whales, these are investors that hold a market-moving amount of crypto, with the potential to make big waves to shift the market one way or the other.

In the traditional stock market, people who trade stocks will follow the advice and movement of famous traders. So should you follow the movement of whales too?

Where are the Whales Rallying?

This is an important question to ask, but the whales are rallying once again. In the last week, crypto whales have been rushing to buy LPX tokens, which are the native tokens of the new AI-powered crypto platform, Launchpad XYZ.

The AI market itself has seen huge growth over the last year. While the market cap was sitting at $1.1 billion back in January 2023, it has since surged by 540% to a total valuation of $7.04 billion in January 2024. In response to this, whales have been moving fast to acquire the LPX token before its public listing, driving as much as $2.46 million into the coin, which also includes tiered NFT passes that start at $50.

According to both whales and expert analysts, Launchpad XYZ’s groundbreaking technology could make it a major player in the future of decentralised finance, with the jump in AI’s market cap inferring just how big the appetite is for AI-merged crypto investing.

Following the Crypto Whales

The first thing to note is that the term ‘crypto whale’ doesn’t necessarily equate to ‘crypto expert’. These are players in the crypto market who have a big hold on where the market will move, but that doesn’t mean all their decisions are correct.

Just look at what happened to a large Ethereum whale in October 2023. At the beginning of the month, the whale placed around 4,274 ETH – which equates to $6.85 million – into an open position on Binance to avoid being liquidated.

One year before, the same whale had bought 4,892 ETH for $13.84 million, with ETH costing $2,830 at the time, compared to the $1,606 it was worth in October 2023. Considering the cost of Binance at the time, this equated to a loss of around $5.24 million.

For onlookers, this is clear evidence of a whale panicking about temporary losses, and perhaps making rushed decisions to limit the damage. With this in mind, following crypto whales is not always a sure thing. While they might have been given the term ‘whale’, the only difference between whales and smaller fish is that whales carry a hefty weight that can move the market more. Nothing more, nothing less.

Making Decisions

That being said, crypto whales can give an investor an edge in the market. If you follow the whales and the smart money moves, then a lot of the time, you will find yourself heading in the right direction.

In the case of Launchpad XYZ, for instance, the market as a whole seems to be putting money behind LPX’s success. After the whirlwind year of 2023 – in which AI was spun into everybodies’ consciousness – there is still a sizable buzz about what AI can achieve, especially when paired with blockchain and the decentralised space. It is likely that these AI-based tokens will experience good fortune in 2024, and it is not only the crypto whales that think so.

At the end of the day, as we mentioned at the beginning of this article, it is up to you to make your own decisions. See what the communities are saying, read buying guides and reviews, and keep an eye on where the whales are moving. Then make your own call.

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