Whales and their role in raising and lowering the market: How do they control the fate of our money?
In the world of financial markets, whether cryptocurrency, stocks, or even commodities, we find what are called “whales.” These are not just ordinary investors, but rather large individuals or institutions that own huge amounts of assets or currencies. Thanks to this huge control, they can direct the market according to their personal interests, while small investors suffer huge losses.
How do whales work?
Whales rely on elaborate strategies to control market prices. The most prominent of these strategies are:
1. Pump and Dump: Whales buy large amounts of a particular asset, causing its price to rise sharply. Small investors then rush to buy the asset for fear of “missing out.” When the price reaches its peak, whales start selling their assets at high prices, causing the price to suddenly collapse and small investors to lose.
2. Dump and Pump: They sell large amounts of their assets at once, causing the price to drop dramatically. This creates panic among small investors, who sell their assets at low prices, only for the whales to come back and buy the assets at low prices.
3. Emotion manipulation: They use news and rumors, both positive and negative, to direct investor behavior. Sometimes, they spread false news to raise or lower prices in line with their interests.
The result: profits for the whales and losses for the young ones.
Small investors are often the biggest victims of this game. They lack sufficient information and the ability to analyze the market in depth, making them easy prey for manipulation. While the whales make huge profits, the rest lose their money, widening the economic gap between them and the big boys.
Why should we stand against whales?
1. Unfairness: Market manipulation creates an unfair environment, where the market turns into a playground for adults only.
2. Destroying investor confidence: With repeated losses, small investors lose confidence in the market, weakening the financial system as a whole.
3. Negative economic impact: Continuous manipulation leads to market instability, which harms the economy in general.
How do we protect ourselves?
1. Financial Literacy: Understanding how markets work and how to analyze them can help investors make better decisions.
2. Don't get carried away by emotions: Emotional decisions, such as buying or selling based on rumors, often lead to losses.
3. Diversify investments: Not putting all your money into one asset can reduce the impact of losses.
4. Pressure to regulate markets: Demanding that authorities impose strict laws against manipulation can reduce the influence of whales.
In conclusion: Can the whales' control be broken?
While whale dominance seems inevitable, the solution lies in increased financial awareness and government regulation of the market. Markets should be a fair playing field, not a place of exploitation for the few at the expense of the many. Investment is a right for everyone, not a playground for whales only.