There is a lot of talk on STEEM about Whales, but we have not even begun to see the effects of a single Whale. Whales make waves, that is why they are called Whales. What a Whale does is goes in to the market, drops $1,000-$100,000+ in the Market, jacking up the price. Then wait a few minutes, and sell about 1/6-1/4 of it for a huge loss, knocking the price down lower than it was before they came in. Then they use the money they got for selling all that STEEM (though at a loss) and use it to buy STEEM for even more than they paid before (again at a loss). Then they put all their STEEM they have for sale at different intervals ($6, $6.05, $6.10, $6.15, $6.20, etc) below the lowest Sell prices (of those that are left), then set up a buy wall with 1 or more Bitcoin, so that they buy price is locked in at the new higher Price.
There are now about 100 people with that capability here on this Website. And some of them might not even realize that they can do it. But STEEM is about to see some major Whale activity over the next year.
The way things are going right now STEEM and other coins could hold each other up without Fiat or Bitcoin. For example, Compuceeds is now traded on OpenLedger. There are people with Tens of Thousands and Hundreds of Thousands of Euro in Compuceeds. Once they all get on OpenLedger and start trading, some of them will turn their Bitcoins in to STEEM and then put that in STEEM Power. And if just 2 people put in $10,000 each, or 4 people put in $10,000 each, or 10 people put in $10,000 each, the price of STEEM would go up dramatically. And all the STEEM they put in to STEEM Power will be locked away not being traded. And another site is starting called PostBase that will pay in its own currency, so there will be plenty of opportunities for people to get in early on a platform and then become a STEEM Whale.
So STEEM doesn't even have to be held up on Fiat or Bitcoin. As all the new STEEM and Steemit based platforms come out, they will all support each others economies back and forth outside of Bitcoin and Fiat. Every time someone brings money from somewhere else to Steemit, the price of STEEM will go up and as we have more STEEM Whales the markets will go higher and higher.
So far we may have possibly been seeing some Bear-Whale activity, but nobody likes Bear-Whales and eventually they do stop. And when a Whale starts creating waves it benefits everyone, even a Bear-Whale doesn't want prices low in the long run, because they are buying during the cheap prices they create.
Call me Ishmael - I feel that we are all searching for a special whale. A secretive whale that changes who we are and what we think about ourselves.
This whale will not simply make large splashes, but will send white capped tidal wave coursing through the ecosystem.
Are you that whale? Am I that whale?
The society of disbelief that is captain Ahab will pursue us, but we will emerge victorious.
Is this a whale tale? Possibly, but this whale's tail can stir up the waters and change people's lives with a simple tap of a button.
Steemit can save those who don't have a voice, and those who suffer in silence.
I will be posting a charity that is dear to my heart in the near future and will prove that as a collective community in this ocean, we can make the world better in a way that was not possible before.
Stay tuned
"With great power comes great responsibilty"
Wow great article, I had never thought of these possibilities and this really opened my eyes. What an amazing time to be alive, in a blockchain powered future.
i get the same feeling that as you said these crypto are going to start propping each other up through the ability to trade on exchanges. I'm still learning about this whales concept, so thank-you for your insights
We will all be whales at some point in Steemit lifetime.
hahahah
How do you go from "at intervals below the lowest sell price" to "buy price is locked in at new higher price"?
It sounds like shorting yourself? So how does that end up spiking the price?
The price goes up at the initial dump of $1,000 to $100,000 into the market (like a reverse coin dump), so the Sell Prices are all knocked way up to 2x or 3x or higher in value. Then they wait a few minutes which allows a few people to start filling in that gap, then Sell, even past the people filling in the gap. This lowers the price but not permanently, it just lowers it long enough to freak everyone out and bring them to the market to see what is happening. Then buy again, just after a few minutes, launching the price way back up, because there won't be many new Sell orders to buy through yet, but at least you can get a few coins bought back at a decent price. Then when you buy all those coins, knocking the price up even higher than the initial 2x or 3x in value. Then you set the price with a Buy wall, and set a Sell wall at different intervals. Not way lower than the new way high price, but just enough to beat all the other sell orders and set up a little sell wall.
Then the market is stable at the new high price. Watch, I have done this before myself when Bitcoin was $1,000 each and I had tons of Altcoins to see if they would go up in Value. I would go to Altcoin markets and do this all the time, and all it takes is a few thousand dollars.
Thank you @marsresident. I must have read it wrong when he is saying the it was "knocking the price down" and "selling at a loss". The two explanations sound conflicting, but you're explanation makes much more sense to me. Thanks!
Great article! Could you provide some good references for Compuceeds ? Never heard of it before
Compuceeds is kind of hidden from the internet. There are a few threads on Bitsharestalk, and they have a Compumatrix forum, but other than that there isn't anyone really talking about it. In like 1-2 months there will be a lot more people talking about it though.
I upvote U