Blockchain intelligence firm Messari estimates that nearly 50% of The Vault is made up of Land tokens, making Whale the second-largest holder after Binance.
The Whale tokens represent part of fractional ownership in “The Vault”, NFT’s private collection of prominent cryptocurrency investor and social media profile “WhaleShark Pro.” It has earned a market capitalization of $ 16 million despite having only $ 1 million in NFT, suggesting that many speculators believe that WhaleShark’s collection of rare tokens is likely to increase significantly in value.
Blockchain intelligence firm Messari estimates that nearly 50% of The Vault is built with Land tokens, this action makes Whale the second-largest holder after Binance. The exchange received a large number of tokens from Land’s $ 3 million initial exchange as an offering on Binance Launchpad and bought another 4,012 Land tokens recently.
The term “whale” is used to describe an individual or organization that holds a very large amount of a particular cryptocurrency. There is no exact cutoff threshold for this definition, but a Bitcoin whale should hold at least 1,000 BTC. A Whale can also be a person with enough amounts of tokens and coins, with this kind of power a whale can cause serious impacts on the market prices by buying or selling large amounts according to his the whale’s interests.
The term mainly describes an organization that holds a large number of cryptocurrencies and has the power to make large transactions causing a significant impact on the market, making this one get high or low peaks depending on the interests of the whale. In the crypto space, examples of such whales include investment groups like Pantera Capital, Fortress Investment Group, and Falcon Global Capital.
In practice, however, most of those big players do not trade on conventional cryptocurrency markets, as their large orders could overwhelm the volume available on the order books. Instead, they buy and sell coins off the exchange books, in what is known as Over the Counter (OTC) trading.
When it comes to Proof of Stake (PoS) blockchains, whales have a considerable influence in on-chain governance processes (more funds at stake gives them more voting power). For these chains, the presence of whales can be both a good sign (in terms of stability) because they possess strong incentives to act honestly and show assistance to the network when a rise is at hand. On the other hand, Sebastien Borget, Chief Operations Officer and Co-founder of The Sandbox, said: “Whaleshark understands very well The Sandbox vision and has the right eyes for acquiring NFTs with high-value growth potential.”Borget notes that the Whale community is “mostly composed of builders and artists” who will create gaming experiences on WhaleShark’s virtual land to drive revenue streams in the form of The Sandbox’s in-game currency, Sand.
The project launched a liquidity mining program last month which may have boosted Whale’s market cap as yield farmers sought novel returns. 5,000 Whale tokens worth roughly $30,000 were distributed in August, offering a 22.5% annual percentage yield to liquidity providers.
By: Jenson Nuñez.