Hey guys, just found a
mind-blowing article about whales and "skype trading".
A small group of about twenty over-the-counter (OTC) traders and clients including big investors, miners, payment processors and hedge funds, has reached a monthly trading volume worth billions of dollars. Instead of using an online exchange like Coinbase or Kraken, the participants close major deals chatting on Skype and settle them by sending fiat via bank wires and cryptocurrency directly to each others wallets.......
So in December, when common people sold houses and cars or took loans in the bank and bought bitcoin during its unprecedented growth, bankers quietly sold all the bitcoins out of the exchange at high prices, and this did not affect the exchange rate, but when not over-the-counter areas were over, they came to the stock exchanges and the remains of bitcoin were already sold on open exchanges, causing a price collapse.
If a whale wants to buy bitcoin for $ 500 million and go with this amount to the one of top 5 exchanges, such as Poloniex or Binance, he can in one trading session, push the rate one or two thousand dollars up, and that's exactly what he does not need.
What are your suggestions??? I think the only way is
just HODL despite the fact of price collapse.
We cannot withstand these whales in the amount of investments but we can defeat them by strategies and plan. These whales exposed the weakness of bitcoin and that is part of their strategy to destroy the reputable name of the currency while benefiting large income over the years (when price goes mainstream) or their main objective to eliminate the value of the currency because of its potential risk on their mainline (businesses).