Crypto whales seem to do very bad things for the industry, but sometimes, a bit of good can emerge.
Whales: Sometimes, They Do What’s “Right”
Whales are individuals that store large amounts of crypto in single places. When they move any of that money, the transaction is so large that it’s likely to bear effects on the marketplace. In the past, cryptocurrency whales have moved heavy sums, often resulting in serious drops in crypto prices.
As of late, bitcoin has lost more than $2,000 from its overall value. This drop occurred over the course of just a few weeks, meaning that something big is going on behind closed doors, but what? News platforms have been slow to suggest what the culprits could be, but now one source is suggesting that a bitcoin whale may have moved a large sum of money for a very small fee.
The amount comes to roughly 44,000 BTC or more than $310 million. That’s a lot of crypto. Do you want to know how much this whale paid in fees relating to the transaction? A whopping 32 cents.
This is both positive and negative in that while the maneuver likely had something to do with the fall of bitcoin and its digital counterparts, the fee suggests just how lucrative the crypto space can be. Many have turned away from traditional financial firms due to lack of trust. In addition, many others cannot gain access to the standard monetary tools they provide (i.e. checking and savings accounts, etc.) given that they lack the credit or the financial history necessary to garner such items.
This is where crypto can really come in handy. It doesn’t concern itself with credit checks or even identities half the time. It’s open and available to everyone regardless of where they are or what they do for a living. If you need something to pay for goods and services and the banks aren’t giving it to you, crypto can get the job done.
But with this latest news, we’re likely to see stronger adoption of crypto in that it can clearly keep fees to a minimum, something banks and standard financial companies can’t always claim to do.
Whale Alert – a Twitter-based crypto transaction monitor – first noticed the trade and the fee associated with it. Even more impressive is just how fast the transaction was processed. Typically, parties transferring small amounts of money are likely to see the transfers occur faster than those involving large sums.
That’s a Small Fee, Indeed
With a sum of more than $310 million, and in BTC no less, one might assume it would take months to process such a transaction, though it appears to have been completed over a considerably shorter course.
The low fee associated with the transaction could potentially lead to more whale activity in the coming weeks.