How whales work ? Imagine that you are the whale đ
Certainly, let's adapt the scenario to #ETHFIâ© .
Whales follow a very ancient technique known as a Wyoming curve. This was also followed by big firms back in the early days of stocks and shares. To start with, a whale will have a considerable amount of cash, say a million dollars. Let us take the curve of EtherFi.
The whale will start by buying small quantities of EtherFi regularly. This obviously wonât push up the price, but it also prevents the price from going down. Once the whale stabilizes the price, it will slowly start to buy EtherFi in larger quantities. This will slowly push up the price in a very stealthy way. Retail investors who donât have any idea of whatâs happening will jump on the bandwagon, further contributing to the whaleâs grand scheme.
Once the whale exhausts its capital of 1 million bucks, the price of EtherFi will be considerably high. The whale will reverse its original strategy. Now is the time where it makes big bucks. It will start to place sell orders for small quantities. This wonât push the price down but wonât let it go up either. After it gets the price on the downtrend, it starts placing bigger quantities of EtherFi. A skilled one would even short EtherFi on a downtrend. The price would plummet after the whale exhausts his entire supply of EtherFi.
The whale would now have its initial investment of 1m$ + a whole lot of millions depending on how well it placed the buy/sell orders. This is the âcleanâ way to make money by being a whale. The dirty way is your typical pump and dump schemes, fake signals, etc.
