Despite its supposed democratic nature, this market phenomenon has been plagued by the same problems it was allegedly created to solve, as exemplified by the dominance of whales.
Cryptography is based on anonymity and decentralization. However, even though cryptocurrencies are purported to be a means to economic freedom for the average person, their emergence and untethered power in the market appear to mirror and exacerbate the problems of centralization and inequality that have long plagued their traditional financial systems.
There are many paradoxes in cryptography. As a left-wing phenomenon, it’s characterized by libertarianism and a fantasy of economic empowerment, free from the shackles of corrupt central banking. In the meantime, it is perhaps the most extreme manifestation of capitalism gone mad, in which some shady big fish, also called whales, manipulate the markets for their gain.
Even though some claim the decentralized nature of cryptocurrency is a progressive step towards bridging inequality, others claim the cryptocurrency’s ideology stems from right-wing capitalist ideas. Some contend that tech solutionism in the development sector is just another form of imperialism. While many say blockchain technology can create new opportunities for the unbanked globally.
Who is right?
Since the rise of cryptocurrency, experts have preached that it’s a bubble with no utility other than criminal activity and will collapse to nothing. Valuations have nevertheless skyrocketed.
Even when they started as jokes, altcoins have grown to ridiculous proportions.
What Are Whales In Crypto?
In the cryptocurrency industry, an individual or entity holding a large amount of bitcoin is called a “whale.” Whales can manipulate currency prices when they possess enough cryptocurrency.
An individual or an institution can be a crypto whale. While retail investors are restricted to the exchanges, whales can make over-the-counter (OTC) trades.
Who Are The Whales In Cryptocurrency?
Despite the transparency of the technology, the identity of crypto whales remains opaque. Crypto-whale articles attempting to answer the million-dollar question “Who are they?” abound, but it’s difficult to link an address to a crypto whale.
People involved in transactions are anonymous, despite their visibility. Except for a few prominent names, such as the Winklevoss twins and Satoshi, little information is available to laypeople about who is behind these vast sums of wealth.
In addition to providing cryptography with its subversive edge, anonymity also adds to its mystique, but it also carries enormous risks. For example, the anonymity of whales led by anonymous creators contributes to the illusion of decentralization on the one hand. Still, on the other hand this subtly reinforces the centralized nature of wealth upon a closer look.
Anonymous trading can be used to manipulate markets. Likewise, groups of whales can manipulate markets in a variety of ways.
In fact, whales in crypto and institutional investors plowing into the Crypto Wild West to hunt for yields demonstrate that crypto not only reflects inequalities in the traditional financial system but exacerbates them.
Understanding the apparent paradox of crypto whales can frame the assumption that cryptocurrency has become (or always has been) rooted in right-wing economics and that its rise and emergence are nothing but logical extensions of capitalism’s next phase. Moreover, crypto markets, because governments cannot regulate them, illustrate the extent to which capitalism, aided by technological developments, may be sowing the seeds of democratic overthrow.