Crypto Whale Alert is Lying to You!! (You Misunderstood It)

in hive-108451 •  2 years ago 

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If you’re an active Crypto Twitter user, you’ve probably seen a lot of crypto crap that makes you roll your eyes. I mean, anything from crypto perma-bulls to straight-up scams; don’t we all feel at least a little peeved by that? As we learn more about crypto and how things work, we notice that a lot of crypto projects have people behind the scenes pulling the string and eventually pulling the rug. Some are not as malicious as others, but their lack of use cases is unjustifiable. Yes, I’m talking about Whale Alert. I must clarify that Whale Alert is 100% doing what it means to do; it’s not a shady project, and it’s quite a popular entertainment for crypto folks. I have no problem with the project, but people really misinterpreted the meaning behind the flow of whale-size cryptocurrency.

For instance,

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A large inflow of USDT goes into CEX: This is bullish because whales are trying to buy BTC or Altcoin with stablecoin, right? WRONG. When a large inflow of stablecoin goes into CEX, it could mean a lot of things like using stablecoin as collateral for future long or short BTC, for staking to earn APY yield, for lending, for spoofing, for cashing out to USD, or for market manipulation because they know a lot of people are following Whale Alert, and they will misinterpret the meaning behind this action which will cause the market to move in the direction they desire.

A large inflow of BTC goes into CEX: This is bearish because whales are trying to sell BTC, because what else can you do with BTC in a CEX, am I right? When a large inflow of BTC goes into CEX, it could mean anything like using BTC as collateral for future long or short, for staking to earn APY yield, for lending, for spoofing, for market manipulation because they know a lot of people are following… you get the point.

The same goes for a large outflow of BTC and USDT from the CEX because you don’t know what they want to do with their crypto. For the record, I don’t hate the Whale Alert project. It’s just that people are using it wrong.

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