In the cryptocurrency market, a whale is someone — individuals, institutions, and exchanges — who hold large amounts of a particular coin. For example, when it comes to Bitcoin, whales generally refer to accounts holding 1,000 or more Bitcoins. Well-known whales include MicroStrategy, Pantera Capital, and Fortress Investment Group.
In a broad sense, NFT whales refer to addresses with positions exceeding $1 million. Giant whales can not only make profits themselves, but also affect the way investors trade in the market.
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Data source NFTGo.io
How to define NFT giant whale?
Due to the uniqueness of the NFT market, unlike the giant whale model of homogeneous tokens, the NFT market has its own giant whale definition model. In a broad sense, giant whale refers to investors who have strong NFT purchasing power and have made considerable profits.
Giant whales often have the following characteristics:
Influence: high
Assets: high
Faith: high
Expected Profit: High
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Why track NFT whale transactions?
On the one hand, both the reputation and capital of giant whales have a high influence. By copying and trading some famous giant whales, it can bring good investment opportunities and opportunities, and keep abreast of market trends. If whales start to sell (listing at or below the floor price), the price is likely to fall. If some giant whale Listing exceeds the general high price, it shows that the development trend of a certain NFT project is optimistic.
On the other hand, wild swings in the market are often related to the liquidity of the market - specifically market depth and spreads. If a giant whale holds a large number of NFTs in a Collection, it may also increase market volatility. Therefore, we also need to pay attention to which giant whales, how much share they hold, and how to influence the market through large-scale transactions.
In essence, the giant whale will have a chain reaction, affecting other investors in the same Collection. You can use the NFTGo.io whale tracking function to track accounts holding a large number of NFTs, or follow the whale alert in Discord.
double edge effect
The existence of giant whales brings about a double-edged effect, which mainly drives the market from two aspects of buying and selling.
One is the giant whale buying. Some giant whales will firmly believe in the value of good projects. When some projects or market values pull back, they will buy the bottom floor of the projects they trust. In addition, the soaring price of the project is often related to the large purchases of giant whales. But it should be noted that some giant whales raise the price of a certain Collection by sweeping the floor in large numbers (some of these transactions may involve Wash Trading). At this time, people start FOMO and enter the market when the market sentiment is high. At this time, the giant whales may sell some of their NFTs to make a profit.
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Data source NFTGo.io
Data source NFTGo.io
The role of giant whales in the ocean is to devour small fish and cause fluctuations on the sea surface through a series of behaviors such as sweeping the floor. So, what other types of traders are there in the NFT ocean?
HODLer- Crab Crab
Characteristics: We use Crab to refer to people who have a certain understanding of the market. They are often some OGs, HODLers of the project, and they firmly believe in their own judgment and the future of the industry (hard shell, rampant courage).
Behavior: Long-term holders tend to support certain projects all the time, and at the same time, conduct evangelism and education on the Internet, and communicate and discuss with each other. They are less concerned with the short-term sentiment of the market and focus on the long-term development. The NFT assets they buy will appreciate or decline over time. But even if the market value falls, they wont sell immediately. This requires a certain amount of patience, self-discipline and courage, as well as a firm belief in the industry. There isnt even a sell for these types of players. Instead, they can choose to buy at this time, or not to buy.
Influence: high
Assets: high
NFT Faith: High
Expected earnings: medium to high
Holding period: longer
Flipper - Shark
Traits: This type of trader is very sensitive to interests, and can very sensitively capture projects that can quickly bring benefits, such as keeping an eye on sharks that smell bloody. The relatively fast-in and fast-out transaction mode makes its holding value not as large as the giant whale, and it often behaves aggressive (very active) in the project, and uses various methods to strive for the white list, Grab the public sale and more.
Behavior: For Flippers, they will know about every short-term market change, gas fees for real-time transactions, and the latest whitelist situation. Calculate costs and profits simultaneously and make quick decisions under pressure. Although sometimes there will be a situation of selling flights, but they can still enjoy the sense of security brought by a guaranteed income.
Influence: change
Assets: Moderate
NFT Faith: Low
Expected earnings: low to medium
Holding period: short
Newbie - Shrimp
Characteristics: Xiami is a synonym for newbies who are new to the NFT market.
Behavior: Will float back and forth with the market trend, and actively listen to the suggestions and opinions of other traders mentioned above. Coerced by market sentiment, etc., trading behavior lacks assertiveness, easy to chase high, FOMO, etc.
Influence: small
Assets: Small
NFT Faith: Low
Expected Profit: Low
Hold Period: Medium
Collector - Octopus
Traits: Octopuses love to collect shells to build fortresses. Like octopuses, people like collectors like to collect collections with high artistic value, and are often part of people with high purchasing power.
Behavior: They buy NFT mainly for collection rather than immediate profit. At the same time, they also communicate with creators to understand the creators themselves and the value of their works. At the same time, they also think about the information behind the images, as well as connotations and stories. Artistic value is more attractive to them than value-added space.
Impact: medium to high
Assets: High
NFT Faith: Medium to High
Expected earnings: medium to high
Holding period: long
Gambler- Pearl Oyster Shells
Traits: An extremely unique group of NFT investment logic, likes to collect Tugou or popular project imitation disk type small pictures, is a follower of the meme style, the cost is very low, and the bet is on market sentiment. But in the end, they will find that what they harvest are either pearls or empty shells. They dont necessarily believe how good NFT will be in the future, but they will follow the FOMO sentiment All in.
Behavior: Such participants don’t care much about project roadmaps, project ecology, value estimates, and airdrop prospects when they enter the market to make decisions. The discovery of meme attributes and innovations will become the loudest charge when they make decisions.
Influence: low
Assets: Moderate
NFT Faith: Low
Expected Profit: High
Holding period: short
Gamer - Penguin
Traits: Penguins spend most of their time on the shore and a small part of their time in the sea. These people are mainly GameFi participants, and because of the combination of GameFi and NFT, they become NFT Holder. On the one hand, they hold NFTs that are mainly used for the admission tickets of the GameFi project. The timing of admission and sale depends on the economic model of the GameFi project and daily changes in new users. They are stationed in the distant Antarctic, and any fluctuations in the PFP ocean will not affect the changes in the NFT collection of such players.
Behavior: For this type of traders, NFT is more inclined to be a pawn that should be pledged for the corresponding GameFi project. Once the pawn chooses to pledge and transfer to the pledge address of the project party, the empty OS homepage will not disrupt their unique The idea of making money, maybe the empty homepage is the maximization of income under the logic of this type of trader.
Influence: low
Assets: Medium
NFT Faith: Low
Expected Profit: Medium
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Data source NFTGo.io
Data source NFTGo.io
Many people have more than one trading style, and when choosing between different types of traders, it is important to take into account financial situation, risk appetite, and your long-term goals.
As @mentalist420 said,
"There are investors and there are collectors".
The proportion of different types of projects will affect the market outlook of the project. Just imagine, if more than 80% of the projects are speculators, then the project is likely to return to zero directly after the market hype. But if most of the project is HODLer, the project may develop very well. This is also instructive for NFT creators:
Is your Collection created for NFT Collector or NFT Investor?
