Although crypto whales are known to make large volumes of transactions, they also incur losses in the market. After all, market volatility does not only apply to shrimps (small-volume traders).
The only difference between the crypto whales and shrimps is that the former enters the market with large amounts of crypto tokens for each trade.
However, according to new data from on-chain monitoring platform Lookonchain, a crypto whale recently entered the market looking for altcoins to buy. After spending large amounts of money on several crypto tokens on different occasions, the whale ended in losses.
Going into much detail, this particular whale entered the market with a whopping $4.73 million. Furthermore, the whale spent the money on different tokens ranging from some altcoins to lower-grade coins.
Nevertheless, the highlight of these transactions was that the whale ended the trade with massive losses. So, this whale made several purchases of UNIBOT, BITCOIN, LOOKS, HILO, and Dubbz.
According to the update from Lookonchain, "A whale has been accumulating UNIBOT, BITCOIN, LOOKS, HILO, and Dubbz. The whale spent a total of 2,802 Ethereum ($4.73 million worth) to purchase UNIBOT, BITCOIN, LOOKS, HILO and Dubbz in the last 30 days."
A whale is accumulating $UNIBOT, $BITCOIN, $LOOKS, $HILO and $Dubbz.
— Lookonchain (@lookonchain) September 15, 2023
The whale spent a total of 2,802 $ETH ($4.73M) to buy $UNIBOT, $BITCOIN, $LOOKS, $HILO and $Dubbz in the past 30 days.
At the current price, the whale has lost $1.05M pic.twitter.com/4XBL0U38GU
More Details About the Transaction
Going into detail, this particular whale lost heavily in almost all the tokens he purchased, except one. The amount this whale profited on a particular token was relatively small compared to what they spent on others. Additionally, the losses incurred on other trades were quite substantial. The first trade made by the whale involved 11,884 UNIBOTs for 868 ETH, which was valued at $1.49 million and purchased at $125. However, following this trade, the whale faced a loss of $385K.
The second trade for the whale was Bitcoin. One thing to note is that this trade made the largest loss for this whale. Apparently, the whale bought 13.47 million BITCOIN at $0.1 for 811 ETH (worth $1.4 million). At the end of the trade, the whale lost around $484k. In the third and fourth trade, the whale lost $94k and $88k, respectively. The final trade was where the whale made a profit of only $5k.
How Do Whale Actions Affect the Market?
The buying activities of whales can greatly impact the market and the cryptocurrency involved in the trade. Some small traders tend to check which altcoins the whales are purchasing before making a trade. Recently, investments in Ethereum have been hindered due to reports of large whales vanishing from the network.
As previously mentioned, whales are wealthy investors who invest significant amounts of money in tokens. Therefore, when a whale purchases a large quantity of a particular token, it indicates that they have faith in that token's potential to increase in value. Conversely, if a whale begins to sell cryptocurrencies in substantial quantities, it signals a lack of confidence in the token's price.
In some other cases, it plays out in a different scenario. Assuming a whale transfers some tokens from a centralized or decentralized exchange to an unknown wallet, it signifies the accumulation of such tokens.
In the same way, moving tokens from an unknown wallet to a centralized or decentralized one usually means a sale. This is because whales are knowledgeable enough to know not to store their crypto portfolio in crypto exchanges. So, the recent transactions of the whale moving around $4.73 million on Ethereum tokens around blockchain signifies a sale. However, this particular whale is at a massive loss.