If you’re a whale it’s probably quite easy to manipulate the price of a small cap cryptocurrency on an exchange, even Binance. Hive is exactly one such crypto and I see today on Binance that there is a whale sell order at 980 sats. With this kind of massive sell wall created on the exchange, it implies that price will unlikely climb past this whale order of just under 1 bitcoin’s worth of Hive tokens.
All the other sell orders are in a standard range from 50-500-5000 for example. Occasionally you will see a 10k-30k sell order (or bunch of orders) at a certain price, but seldom do you see a 90k sell order for Hive token. I have seen similar such sell walls on other cryptocurrencies that I study on the exchanges. It is these whales that can manipulate the price movement.
This kind of buy or sell order is all it takes to block the price of a crypto moving any further on the day. Unless the whale moves the order, price will likely reach that order and then take ages to be filled, or probably just reverse from there. That’s why it’s called a wall. Price movement is stopped at the wall.
Naturally there will always be some whales with massive bags of crypto that they also want to trade, and I have always wondered how one sells or buys such large orders in a low liquidity market. I presume one would do it in small increments over some period of time.
However, as I watch this particular whale order today on Hive Binance trades, I see that it has just increased from 90k to 120k. So some whale on Hive is really manipulating big time today, keeping the price massively suppressed. There are of course other outlets to trade Hive token on other exchanges, but not many. Price will be easily kept in check like this on just one exchange. Is this what is actually suppressing Hive’s long term price growth? Is this what causes the big pump and dumps that Hive goes through every few weeks?
And for all we know it could be someone like our arch enemy Justin Sun who bought Steemit, only to trigger the hard fork that launched Hive in the first place. For all we know it could be him putting a little whale order in place to keep Hive at half the price of Steem, just for spite because he can as a whale. Or it could just be a day trader aiming to take profit, but 120k Hive for sale? Really?
But I’m an amateur and have no real way to know the details of the politics of Hive or the mind of whales – good or bad. All I see is possible price manipulation from my minnow vantage point. Hive price is now at 970 sats as I write this while watching the exchange action. With just 10 more sats to the upside, we will see if the wall is hit and price stops in its gradual climb, and perhaps even corrects back down.
This is the frailty of low cap coins basically. They are easily manipulated and possible to exploit in this way. It’s then not natural price action between buyers and sellers, or supply and demand but something more concerning. I hope I’m wrong of course. But then this is what money attracts – crime, greed, and all that sort of thing. Anywhere that money is to be made, that is where the low life will be found.
I mean if you can hack the system and cheat or manipulate even in a so-called honest or legal way, then you will do it as a whale. Or some might do it. They are attracted to money and that’s always going to be there, that’s why anyone trades or gets involved in crypto – to make money, to take profit, to increase profit. Some rare few might be “in it for the tech”, like 1%. The other 99% are interested in cryptocurrency because it’s a currency, it’s money and we like to make money. Trading is about making money. Investing is how one makes money. We buy low and sell high.
So I’m not surprised that there are manipulators gaming the system in any way they can, in all financial platforms. Even gold and silver prices are heavily manipulated. The financial world is full of people trying to make an extra profit. Wall St insider trading goes on all the time. It’s the nature of finance to be a place for pirates and chancers of all sorts. So I won’t bother waiting to see if I can make a sale today since the wall is there. I will come back another day when the whale is gone and check on price action on the exchange.
Posted Using LeoFinance Beta
It's all manipulated constantly, including bitcoin
Good point there frot.
Posted Using LeoFinance Beta
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