My opinion and answer to my own question asked on the tittle of this post is a very fat and huge HELL NO, because no matter how good the project is, that single person who holds 5% to 10% of the crypto projects total supply has a lot of control over that crypto project which to me defeats the whole point of decentralization in the first place, because decentralization literally means the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network, so now if you look at it properly one person or a single whale holding 5% to 10% of a crypto project total supply indirectly the crypto project has transferred control to that individual because the project will be doing everything possible to make sure he or she is happy with them and does not dump their project or coin at once because it will definitely affect the project and tank their price badly.
And that is not how crypto is supposed to work to my understanding of it, one person having too much stake or influence over a crypto project is not good for that coin because let us face facts that person can manipulate and crash the crypto projects price if he or she wants to For example I hold 5% to 10% of a certain crypto project if and when I decided I do not like the project anymore or there is a project I see is more superior or more interesting and I would make more profit from the other project, I will flip or sell all my coins to buy the other coin I like which would crash the price of that coin, which would leave other investors in a huge and unexpected dip which would take the said crypto project some time to recover, that is if they ever recover because after I sell a lot of other people will definitely panic sell which is not good for that crypto project.
So for me anytime I am doing my fundamental analysis I check through Binance smart chain (BSC) scan or ETHscan to see if there are whales or accounts who hold more than 1% to 2% of the total supply of a coin or crypto project to decide if I would think of investing in that coin or if I eventually investing in that coin because it has a low market cap and would pump with a little push that those other coins with large or high market cap, I would not hold the coin for a long term, it would just be short term trades to make some profit and am out.
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Good post for considering what can happen but ultimately if the project is good it shouldn't matter if whales hold significant amounts of the token. How they were able to obtain a large stake is also important. If they purchased like everyone with an even playing field or were given their share at a discount as an early investor.
Yeah, I get your point but imagine if they decide to dump that coin, what do you think would happen?
It wouldn't really be in their interest to do a large dump because it would crash the price. If a whale was trying to maximize their own return they would sell in small increments to have minimal price impact.
Nice..That is a smart move ,
Thanks buddy
Good to see you
Thanks mate
If I'm not mistaken, a whale holds approximately 20% of circulating Doge... dangerous stuff!
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Very dangerous stuff buddy
https://leofinance.io/threads/@onwugbenuvictor/re-leothreads-6s26ge
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