Bitcoin Forum

Trying to give some perspective on the current state of the altcoin marketplace. I feel like it's important that people read this and listen to this, and even inspect buy/sell orders to verify what I am saying. If we stand together to prevent this from happening and selling at deflated prices, the market can recover.

Whales (super rich people) are taking advantage of news events and FUD to bring the price down, making it look like it is in response to these events when in reality, and on inspection of buy/sell orders it is clear manipulation.


.Whales (super rich people) are taking advantage of altcoins that are on single marketplaces (Think PRL, DBC, ELIXIR). They are doing this through the use of Sell and Buy walls.

.A sell wall is when one of these whales dumps thousands of altcoins to be sold at a below market price. They have no intention of actually selling all their coins at this price whatsoever, what it actually means is that if anybody on that marketplace wants to sell their coins for whatever reason (FUD, happy with their profit, price going down) they will have to reduce their sell price to below that of the whale, otherwise everyone that wants to buy some of the altcoin will just buy from the whales seemingly endless supply. This brings the price down significantly, sending off a number of signals (people begin to think their coin is crashing so panic sell, people begin to buy into the FUD surrounding tiny news story's such as S.korea "banning" cryptocurrencys) leading to a downward spiral of the price getting lower and lower. At this point the whales work is done (and they can lift their sell wall if they so wish to)

.At the same time as creating these Sell Walls... the whale will also create a buy wall at a cheaper price than their already reduced sell wall. This means that all the coins that are being sold at the price needed to get past the sell wall, will be going to that same whale and they are getting a load of coins super cheap.

This cycle just continues repeatedly, allowing the rich of the crypto world to get richer, and the poorer to loose out more. It is essential that you do not fall into this trap, and sell when there are massive manipulations of the market. The fact that these sell and buy walls exist proove that the big time investers are confident in these coins, as they are buying as many as they can and that the price will go up. If you are selling your coins now at a fear of making a loss you WILL loose out. We can all stop this from happening by HODL and not falling victim to these walls.

I appreciate I may not have explained this greatly so will go through an example.

1. Price of PRL (for sake of argument) is $1
2. Whale sees random piece of news that could affect crypto market and create FUD. Uses this to artificially reduce price of PRL
3. Whale creates massive sell order of PRL at $0.9 - This brings down average price on exchange. people start to panic and believe that PRL is crashing. Perhaps due to this minor bit of news that the whale has manipulated
4. People get scared, and want to sell their coins. However the only way to sell their coins is to sell at a price cheaper than $0.9. This brings down the price further and further as more and more people get scared into selling
5. The Whale, that has no intention of giving up on PRL, buys all the coins at the deflated price (with a buy wall cheaper than the massive sell wall they've created) thus increasing their portfolio through manipulating others into panic selling. This is what is happening currently, and you need to resist it. I know it's hard when you see your coins going down, but they will go back up (unless you have complete shitcoin). Just HODL





TL/DR = Price manipulation, especially for single market coins (mainly those on Kucoin). HODL

Yes this is a fact,but you are have you forgotten the financial institutions like wallstreet and CMEs? they are the ones who are controlling most of the exchanges not only whales,for them these whales are just planktons.

Super explanation, hopefully at least some newbies stop chasing the price down by panick-selling.

This is a BULL MARKET!!! Stop wetting your diaper every time the big boys shake the tree a little bit!

(Not directed at the OP, just a caring reminder to all the new money entering crypto these days..)

I am by no means any sort of expert on anything financial, let alone crypto currency, but having said that I think it's obvious that where was a a tremendous surge in a large number of coins and tokens in December/January, one that in large part was driven by this world becoming known by the larger world.  

With the prices having shot up so fast in such a short period of time it seems only natural that a large number of people would want to take some of their profits especially considering how volatile this marketplace is.  Once that decline starts the FUD factor appears and people have an incentive to take whatever gains they've made rather than risking not only losing their gains but possibly falling into a negative position.  

I think in the long run the coins and tokens that have a real world use, that gain traction because of that, as well as holding to the credo of crypto which  as I understand is decentralization rather than concentration,  will have a sustained growth and one that might be not so chaotic, not sure about that but those are definitely the ones I'm looking for to put in my long term portfolio.

For a newbie you gave a fair explanation and very thoughtful as well. I have been in the market of crypto for not so long, but I have witnessed a lot of this market manipulation and fud where unfortunately not so wise people have gone into panic and lost a lot of money. I have seen my wallet go down 40% in a single day and a week later it's valued grow more than 80% altogether. I did not panic, I actually was dying because I did not have money to buy more at discount. The problem is that the whales are savvy investors and the common folk get easily manipulated, the whale are rich because they don´t think like normal people and unless we train ourselves to think of the market as a tool and don´t bring emotions to it, the whales will keep doing what they are good at, manipulate weak minds and emotions and profit from it.

Ah, the myth of the whales.  You know, it could also just be panic selling by the uninformed masses.

yes i just believe that there is so much people are panic with the market correction that makes people afraid investing in altcoin.  crashing isnt something new. i think people panic too much  cause soon it will get pumping up and recover soon.

A very good and thorough writeup about how whales can influence the market price.  Thanks for throwing this together for others to read.

This is a really good and important explanation you have done. I already knew that, but everybody should know. This message should be pinned so that everybody in our community understand how certain things work.

I am sad when opening the blockfolio and see all my assets are red. I am confused, whatever causes this decline. What should I do, hold, sell or buy back?

@ccarew. There is also a good possibility that the altcoin you are holding with great care is a scam. Check this site https://coinmarketcap.com/. More than 90% is those cryptocoins listed there have no real use in the real world. Their value and price is realized only by the buying and selling in the market with no fundamentals.

In any case, like what you said. Whales pump them and then dump them.

Great explanation, this market is controlled by whales and we plankton have to be along for the ride and estimate their moves on when to hodl and sell. This is all unregulated and so easy to manipulate so we have to stay on our toes to keep up, hopefully someday more of us move up the ranks and open the market up to help the new guys more rather than just have it be controlled by whales. Having a distributed supply is so important to this.

It's no myth. All you have to do is look at the order book and see that someone is selling $1,000,000,000 worth of a token at 1 price. If you look you can see how many orders there are at a particular price . Then you know for a fact that it is one individual order.

Sometimes it may be a scaled order of the same magnitude. Each offer of 45,000 tokens 5 cents difference between a handful of orders that are all for the same large amount.

But it is definitely panic selling by the masses or all the rookie traders out there trying to "trend" trade.

I just scoop up all the deals and laugh all the way to the bank on the next bull run.

Sell me your tokens cheap !

yes this is very true and is the real fact people panick alot and whales are taking advantage of that , this is becoming a survival of the fittest game and tge rich are getting richer, the problem is people wants to buy lambo in just a week of trading come on

Anyone wanna go whaling? Who's got a boat

this is what i want to say others
do not listen rumors seriously.
market crash = good time to buy

what is your point?
i dont see something new in crypto behavior

I really like your explanation. I already knew that through some altcoin trading. I stand no chance against them. All i can do is just follow and estimate their moves and strategy. But sometimes the price can be dumped because of it's scam project like credence.

I agree with your conclusion : just HODL  ;D

This is just another common thing in cryptocurrency market,there are more greedy people here than in other markets like forex and stockexchange,cryptocurrencies are easier to manipulate.

Lots of pump and dump nothing new in the crypto space, but if the coin is worth its $$$ then this is a great buying opportunity.

That may be one of the reasons why altcoins are down across the board.  For small fish (like me) it is a great time to buy in on some temporarily depressed cheap altcoins.  All coins will rise soon.  It is a hold through the short term volatility.  Good luck to all!

This post makes a lot of sense. Very well explained man. Good job and thank you!

That's the strategy of the whales to increase their portfolio and grow even more in the future. There are so many newbies in the cryptocurrency world, and it's normal for them to go FUD mode because of the huge price dump.

I don't fall into that kind of trap because I've been studying and learning about cryptocurrency for several months because of my perspective. Newbies and inexperienced traders, buyers and holders should be aware of this and think of it as a long-term investment.

This is what the game of cryptocurrency is all about. Pump and dump. However, never ever fall into the whales' trap that you might go FUD mode.

Just like today, some of my top altcoins are going down big time, but I'll holding them for long till the price is right. ;)

There are many same thing in  marke.Some people try to manipulate the market

The pump and dump is the reality with bitcoin as well altcoins. At times this gets out of the way with the fake manipulation. Right now as each and every altcoin is dependent upon the bitcoin, the decline in the value of bitcoin has got reflected on altcoins as well causing it to go down.

You have a point in explaining about market manipulation. But holding is natural for savvy inverstors. Anyway using technical analysis is the only way to maximize profit against this so called market manipulation.

This market crashed will be good experience for newbies like me. It's important to learn how to create "stop loss" order. Yeah, and i agree about your explanations. I saw there are many market manipulation done by some whales. In my case, is XLM (stellar). I bought at $1, and now i'm loss around 70%.

Very nice explanation brother we need this kind of post especially nowadays there are lots of fud's are coming everywhere. Yes the best and safe way is to hold and not to join with the panic sellers if there are only investors are well informed of this information. These kind of activities of greedy people will lessen. They are the one's who are destroying the crypto market i am wondering why they are doing this when they can see the cryptomarket is on uptrend actually they don't really need to do this to have gains but the word "Greediness" suits to them. I just hope they realize what they are doing the market is crashing everytime they do this what if the people change their perspective on crypto when they got fed up by this kind of events.

There will be always a reason why theres a sudden market crashes,one of these reason is fud,negative news towards btc or someone is making a good entry to the market like giant financial institutions.

Just don't panic sale all your altcoins (https://coincodex.com/) for a low price and your fine :) Better buy anything at 30% discount.

Exactly right - all you have to do is look at the order books.

I totally agree with this because Altcoins are like cards, you can play it with other players in a win/win situation at the end of the game if you are a banker. People with weak hands are the most affected individuals in this games because they always take the bait. I actually did it before but came a time that I have learned the importance of patience and timing. Whales manipulation of prices does not only benefits on their own but also for other people as long as there is capital. The best way to counter such loss from these manipulation thing is no other than HODL.

Recently many altcoins were down in price due to the fact that Bitcoin was experiencing hard times. After the bright advertising campaign Bitcoin. Seeing its fall, people lost faith in cryptocurrencies in general.

I've seen this happen a few times since I first bought bitcoin about 6 months ago. Never got scared once and sold. Now I have many altcoins that are in the red today. Not worried a bit. But that was an awesome write up about the situation and how the manipulation works that is going on day to day in the crypto world. More people need to read this and post things like this instead of "im worried" "should I sell" "whats happening" lol  ;)

Great post, I think far more people need to take the time to watch how this market actually works. This is still the wild west and there are plenty of cowboys looking for ways to manipulate the price.

It is very nice that the first messages you put in the forum are long this way.
There are places right at the points you mentioned. But not all is right. There are many factors that affect prices in this market. whales, supply-demand, how long people keep their coins...
if I had a dollar I bought 10 cents a dollar and I still sell for 75 cents, I will not wait :)

There is another school of thought that believes future holders are manipulating the market since the first set of future on Bitcoin mature  in few days. Those that shorton bitcoin are manipulating to make profit.

all cyprocurrencies are suffering (value drop) but in my opinion this was expected. Bitcoin price multiplied x3-4 last year and this correction was only reasonable thing. Now we go back to reality, something like btc or any other coin cannot worth 20,000$. Based on what.

Very well said,nice explanation for a newbie sure thing you did some research before you get involved in cryptocommunity,hopefully market will recover anytime soon bears will get tired and bulls will surely come.

Yes i completely agree with your point i am holding some coins from long timne even november and  early december altcoin crash i dint sell any of my holding even after huge price increase i dint sell still holding for long term . In crypto Currency if you want to get good Profit HODL its only mantra . Dont be a food for whales game.

Is it possible that the following scenario could unfold: the possibility of entering a phase of stagnation.
Whatever the reasons which brought the market down, I don't see anything on the horizon to kickstart the market.
Beginning of January I was quite bullish after reading about the millions of new investors into the crypto market, but not even this huge injection of new capital could not keep the market from declining sharply.
So where would the huge amounts of money come from, which are needed to turn this market around?
Thus I could see a market neither dead nor alive, hardly moving for years to come.

I think a continuous year of a bull market is a more serious reason, alongside China FUD and whales.

Your explanation was quite good and accurate. I would only add that now that it's possible to short bitcoin with futures, these whales have an even greater incentive to lower the bitcoin price. They will be able to get a lot of cash from their short on bitcoin, and they will be able to buy back bitcoin at a lower price after the dump, and then go long on bitcoin and manipulate it's price to go up. They know all the fud that lives through these markets, and how easy it is, to generate panic selling and then fomo buying. And you are right, the only way we can fight this, is to hold our coins and don't participate in their money games. This will be easy to do, once real adoption starts happening. Only then, they wont be able to ride the markets as if they were their own playground.

Yes exactly, with the shorting of futures. Being a bitcoin whale has become even more enjoyable..

Every altcoins and BTC at some point has been manipulated by Whales. It's nothing new but yeah harsh truth that more often alts get manipulated.
If you want to see the detailed analysis of DOGEcoin manipulation, have a read here. Detailed explanation.

https://cryptofrenzy.files.wordpress.com/2014/02/god.pdf

Yes it is time to wait all coins are in red seen and feeling not happy because few days before market is seeing green but now everything is red,

You mention good points.Congrats.We hope that , altcoins will recover in very short time indeed.Lets see whats gonna happen.