What will happen to Crypto Whales and price manipulation?
What will happen to Crypto Whales and price manipulation?

What will happen to Crypto Whales and price manipulation?

By Maria Fox - 4 Jan 2020

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It’s no secret that crypto whales run the whole cryptocurrency market, sometimes also through manipulation. 

According to the results of a study conducted by research company Diar, in 2018, more than 55% of the total number of bitcoins in circulation was controlled by less than 1% of crypto whales. Per Wimmer, a former Goldman Sachs banker explained this situation as follows:

“The crypto market is dominated mainly by ten big whales or privates. They are massive in the market and take up a lot of space and volume so if you take the top 10 or even 50 you will have a lot of the volume covered already. It is too easy to manipulate the market so far.”

 No one knows for sure whether it is due to luck or a matter of cold-blooded business that crypto whales today are who they are, with millions of dollars in their accounts. However, a recent study revealed the most financially attractive sides of the cryptocurrency industry. 

The results of a recent study of Ethereum Express, a specialised platform for the multi-thousand-strong community of crypto experts and enthusiasts, identify two cryptocurrency industries — gambling and mining — as the most profitable in 2020. 

According to data obtained from Ethereum Express, online gambling market revenue will exceed $100 billion by 2025. This information is also confirmed by one of the recent researches conducted by Grand View Research, according to which online gambling will bring $103 billion within 6 years.

According to the forecasts of Brock Pierce, chairman of the Bitcoin Foundation and American Entrepreneur, who has a lot of experience in working with digital currencies, the further development of the blockchain largely depends on dApps, STOs, and the gaming industry.

As a result of joint studies of Grand View Research and Transparency Market Research, it turned out that by the end of 2024, the blockchain market would grow to $20 billion in annual revenue.

The main reason for such growth is the popularity of the gambling industry, as well as brand-new models of user interaction. Among them, experts are considering blockchain technology, whose capabilities have a number of undeniable advantages that are already changing the landscape of this industry.

Obviously, not a single technology stands still: a few years ago, crypto gambling was a wild novelty of iGaming. Casinos expanded their audience with a large influx of crypto enthusiasts, and regular players benefited from anonymity and increased transaction speed. The community needs a completely new solution to provide global market growth. So, an ideal solution should have the following properties:

  • be under the control of the user (without the need of the middleman),
  • have no need to connect traditional payment methods,
  • be provably fair and transparent,
  • be Smart Contract-based,
  • be fully secured (most important and noted by all respondents).

Crypto whales will most likely disappear over time

There is always a particular person behind a cryptocurrency. The observation shows that the largest part of coins are concentrated in the hands of a few people, with the majority of them being bitcoin pioneers. As the cryptocurrency industry develops, in the event of increasing economic pressure, ever more crypto whales will most likely leave the market over time. At the same time, other people will find cryptocurrencies attractive — they will buy, hodl and sell — and thus, all cryptocurrencies will be distributed more evenly.

The cryptocurrency industry faced with the most important stage — it’s necessary to increase user awareness, present decentralised autonomous solutions to facilitate the interaction of an ordinary person with cryptocurrencies and make them accessible to everyone. 

99% of “empty” cryptocurrencies on the verge 

As the governments tend to track and scrutinise new aspects of digital money, regular delistings are taking place on exchanges, while new projects are tested for a long time before being released to the masses. According to the latest forecasts of experts, only 1% of projects from those that currently exist will remain on the market:

“I have said publicly before that I think 99 percent of all crypto probably goes to zero, but there is that one percent that I think is focused on solving a real problem for real customers and is able to do that at scale,” 

Ripple CEO, Brad Garlinghouse shared his prediction during the latest Bloomberg interview.

Meanwhile, many cryptocurrencies have already died. According to Coinopsy, 978 projects have disappeared during the last 5 years. The most common reason for their extinction: abandonment and lack of demand for the project, this fate befell 69.3% of startups. The second most popular extinction reason — 27.7% of projects fell into this category. It is interesting to note that most of these projects failed at the end of 2017, probably under the influence of a fast-moving bull market.

However, it is impossible to say for sure how many crypto projects have gone to zero. DeadCoins has 1,818 projects, while CoinMarketCap announces 1802 projects with zero daily trading volume.

At the dawn of new digital discoveries

 Nowadays there are many blockchain-based platforms searching for ways of changing the cryptocurrency world and attract audience and investments. One of such brand-new ways is the creation of a hybrid of DAO and Proof-of-Authority algorithm, aimed at the development of tools that would allow users worldwide to profit from the most popular cryptocurrency directions without the need to buy and maintain expensive mining equipment or be afraid to be cheated due to lack of transparency. Such a concept could become the standard or a ready-made infrastructure with a clear integration process for different companies.

Already now there are many world-famous industry players standing at the start of their integration of technology hybrids to get an effective tool to attract new customers and investors. By the way, one of the first adopters of hybrid solutions was Mining Express, a large mining conglomerate, the fifth-largest mining company in the world and the largest mining farm in Europe that integrated the EEX solution.

Big changes are coming that will affect the entire industry since really large market players are about to join the game. It is worth shifting the attention from movements on crypto whales’ wallets to the integration of crypto project solutions into the functioning of global corporations – these solutions are about to change the history of the industry and already now hybrid blockchain-based technologies attract a large flow of financing from all over the world.

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