Why whales aren't as rich as you think (@dantheman sells 1% maybe)

in steemit •  8 years ago  (edited)

Just now on Poloniex someone sold 9000 STEEM for about 45 btc, the market reacted by dropping more than 10%. While it is quickly recovering as I speak it got me thinking.

How would a whale do trying to sell 100,000SD? Not well! Looking at Polo even if you wanted to sell your STEEM at $0.10 there is only buyers for 20,000 of it.

In fact if you were to try and sell 100,000 SD on Polo now you would receive $30,000

In summary whales got a lot of money but not as much as you think, they will only cash in big the same way as the rest of us will, if steemit gets big, thereby give the exchange markets more depth.

For those disappointed I promise future posts on why Wales isn't as rich as you think.

#Edit 1

Seems it was @dantheman selling off 1% of his stake, thanks to @habibe who provided this

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As with all alt coins, such as Bitcoin, you could not simply dump a million dollars at once as there is not enough liquidity, you have to do it over a period of time.

If you do it too slowly others will sell before you can.

But that only applies if you don't believe the market will eventually recover

Let's hope the whales stay confident and don't make a big splash by selling off too early. I huge sell wall right now would be bad news. I certainly wont be powering down for a while.

This is true with all crypto currencies and even most penny stocks..... If whales would just put up a large ask wall instead of hitting the top bids the price wouldnt be nearly as effected.

If you do it too slowly others will sell before you can.

But that only applies if you don't believe the market will eventually recover

That is the basis of supply and demand. It happens everyday in every market.

Just trying to reel in some people's jealousy

Thanks for the info. I just logged in to buy.

yea, I didn't have any funds on polo. Rectifying that now

Yup it's always nice to keep some funds on there.

The Wales flag is hilarious and pushed me over the top to vote for you!

So tempted to do an entire post about the economy of Wales, but only mention Wales in the title and in the last paragraph, and see how many confused comments I get

"Just now on Poloniex someone sold 9000 STEEM for about 45 btc"
I know who did it! :D

cool, not that big a deal to his stash

It happen bro , remember the story of ETH!

What happen?

every month we see big sells on eth , I don't know if we talk before on the troll box I have the same name there Ben99 , but big sell happen to all coins

Well, wealth isn't the same as liquidity. Not being able to sell it all at this moment shows that they're not as liquid as their account value might suggest, but if that wasn't the best estimate of the value then the market would already be pricing it different.

The market price will often quickly recover after there's a large sale that made it fall. The smart money realizes nothing fundemental has changed.

This will happen more often through time but i'm sure STEEM will survive and thrive!