Whales Stocked Up Bitcoins in Anticipation of Long-Term Scarcity

Whales Stocked Up Bitcoins in Anticipation of Long-Term Scarcity
Cloudbet

Though cryptocurrency has experienced a bearish market in the latter part of 2018, the early investors called the ‘Whales’  took the best advantage of this period. In expectation of a future rise and scarcity of digital currency, they stocked up cryptos worth billions, via open market sources.

Whales are mostly the early crypto investors who have invested a huge sum in the digital currencies, their impact in the crypto space is enormous such that they can easily influence prices either by selling our buying cryptos. They are mainly former Wall Street investors, with so much influence in the crypto market.

Due to the recent fall in the prices of cryptos, the Whales stepped in to mop up cryptos gaining as many coins as they can reach. These kinds of transactions are not done through exchanges, to avoid high premium trading fees. Rather they operate through OTC crypto dealers or over the counter trading. Some of these kinds of service providers are, Coincola, Circle, Itbit, and Cumberland mining. Some connect with miners via Telegram, Wechat, and Skype OTC group.

Over-the-counter crypto trading is a service available to large crypto traders who may want to avoid all the challenges and high cost associated with trading on traditional crypto exchanges. Though there is a high risk of hacking and theft, the Whales prefer using this method because it comes cheaper than the normal exchange.

According to a report, the number of OTC providers increased since China banned crypto exchange last year. Though it has been around for years, the growth was triggered by the demand of big crypto investors who want to operate behind the veil. Billions worth of cryptos have been traded on Skype, the minimum requirement to start selling or buying bitcoin on the OTC platform, besides the KYC is $50,000 to $100,000.

Moving coins through the OTC is very easy for the Whales via telegram, Whatsapp or Skype.

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