You’ve probably heard whispers about the "whales" swimming in the crypto seas. But these aren’t your typical marine mammals – they’re the ultra-wealthy folks and organizations holding massive amounts of digital currency.

What Exactly is a Crypto Whale?

So, what makes someone a crypto whale? There’s no hard-and-fast rule, but it generally comes down to owning a huge chunk of a coin’s total supply. We’re talking over 10% of the available coins for a particular cryptocurrency. That’s an ocean-sized wallet!

Take Bitcoin, for example. In May 2022, just four wallets controlled over 3% of all Bitcoin in existence. The top 100 wallets? They collectively held over 15%. Now that’s some serious whale power!

Bitcoin isn’t the only one with its share of whales. Dogecoin, the beloved meme coin, had a pretty wild concentration too. In 2022, just 15 addresses held nearly 52% of its total supply. Even Vitalik Buterin, the mastermind behind Ethereum, is considered an Ether whale thanks to his massive stake in the coin he created.

How Whales Make Waves

With that kind of buying power, whales can really make waves in the crypto marketplace. If a whale decides to sell off a giant chunk of their holdings, it creates a tidal wave of downward pressure on prices due to the sheer volume and lack of liquidity. Other crypto enthusiasts are always on the lookout for signs of an impending "whale dump," closely monitoring exchange inflows to spot potential dangers.

Here’s the twist, though – whales keeping their coins locked away actually reduces trading liquidity in the market since there are fewer coins actively circulating. Their massive idle fortunes are like icebergs weighing down the crypto ocean.

Tracking Whale Movements

Not every whale transaction is a sell-off. These giants could simply be migrating to new wallets, switching exchanges, or making monster-sized purchases. But you can bet experienced crypto folks keep a keen eye on those huge whale wallets, carefully tracking any ripples they make to navigate the ever-shifting tides of the market.

Whale Alert is a popular service that tracks these large transactions and reports them, often on Twitter. Whenever a whale makes a big move, it’s usually publicized quickly, giving everyone a heads-up on potential market changes.

Below is an example from Twitter from Whale Alert:

The Human Side of Whales

Behind these massive holdings are real people and organizations. Some whales are early adopters who bought into Bitcoin or other cryptocurrencies when they were cheap. Others are companies that have invested heavily in the belief that cryptocurrencies will continue to grow in value. For instance, Ethereum’s founder, Vitalik Buterin, is the biggest Ethereum whale because he holds a significant amount of the cryptocurrency he created.

How whales affect crypto's price

Price volatility can be increased by whales, particularly when they move a significant amount of one cryptocurrency in one go. For example, when an owner tries to sell their BTC for fiat currency, the lack of liquidity and enormous transaction size create downward pressure on Bitcoin's price. When whales sell, other investors become extremely vigilant, looking for hints of whether the whale is "dumping" their crypto (and whether they should do the same). 

The exchange inflow mean, also known as the average amount of a certain cryptocurrency deposited into exchanges, is one of the most common indicators crypto investors look for. If the mean transaction volume rises above 2.0, it implies that whales are likely to start dumping if there are a large number of them using the exchange. This can be viewed by regular crypto traders as a time to act before losing any potential profit.

How whales effect liquidity

When it comes to learning about whales and liquidity, one must remember that while whales are generally considered neutral elements in the industry, when a large number of whales hold a particular cryptocurrency, instead of using it, this reduces the liquidity in the market due to there being fewer coins available. 

What crypto whales mean to investors

In terms of the relationship between whales and investors, one must remember that there are various situations in which a person may transfer their cryptocurrency holdings. It's worth mentioning that moving one's assets doesn't always indicate that you're selling them; they might be switching wallets or exchanges, or making a major purchase.

Occasionally, whales may sell portions of their holdings in discrete transactions over a longer period to avoid drawing attention to themselves or generating market anomalies that send the price up or down unpredictably. This is why investors keep an eye on known whale addresses to check for the number of transactions and value. This is not necessarily a task that newbie investors need to actively be involved with, however, understanding the terms and how whale accounts can affect the market is recommended.

Why Whales Matter

Whether you love them or hate them, whales are a formidable force in the crypto world, shaping its dynamics in profound ways. These giants, whether they’re creators, collectors, or traders, have a tremendous impact across the digital waters. When they make a move, it can trigger monumental swells that ripple through the entire market.

By understanding whale activity, anyone involved in cryptocurrency can better navigate these choppy waters. Staying informed about whale movements helps both newbies and seasoned traders make smarter decisions and stay afloat in this ever-changing space. Keep an eye on these behemoths; their actions can significantly influence your crypto journey.

While tracking whale activity can offer valuable insights into the cryptocurrency market, it's important to complement this knowledge with expert advice. Consulting with a financial advisor can help you navigate the complexities of investing and ensure your strategies align with your personal financial goals and risk tolerance.

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We are delighted to announce the listing and support of Synthetix (SNX) on Tap!

SNX is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold SNX for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting SNX will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Synthetix is a groundbreaking decentralized asset protection protocol that permits users to mint, hold, and trade derivatives across different asset classes such as commodities, fiat currencies, stocks, and even cryptocurrencies like Bitcoin.

Synthetix provides a decentralized, permissionless, and censorship-resistant platform that allows users to gain exposure to both crypto and non-crypto assets without the need for ownership of these assets. This enables anyone with an interest in DeFi to join the industry through the use of synthetix assets regardless of whether they hold the actual assets or not.

Get to know more about Syntheticx (SNX) in our dedicated article here.

We are delighted to announce the listing and support of Enjin (ENJ) on Tap!

ENJ is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold ENJ for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting ENJ will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Playing an important role in the adoption of Web3, Enjin provides a platform of software products designed to allow anyone to harness the power of NFTs (non-fungible tokens) through the development, trade, monetization, and marketing of blockchain assets.

Powering the ecosystem is the Enjin Coin (ENJ), a token used to back the value of NFTs and other assets minted on the platform. When an asset is minted it locks ENJ tokens into a smart contract and effectively removes the tokens from circulation.

Enjin Coin (ENJ) is the native token of the Enjin ecosystem. Built on the Ethereum blockchain and compatible with multiple gaming platforms, the Enjin Coin is an ERC-20 token that allows the in-game items created on the platform to be traded with real-world value. The ENJ token has a maximum supply of 1 billion coins.

Get to know more about Enjin (ENJ) in our dedicated article here.

We are delighted to announce the listing and support of Chiliz (CHZ) on Tap!

CHZ is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold CHZ for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting CHZ will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Chiliz is a fintech company that uses blockchain technology to create new ways for fans to support and engage directly with their favorite sports teams. The company's goal is to be the leading provider of fintech solutions for sports and entertainment businesses around the world. Chiliz enables its users to trade tokens to show their support for professional sports teams.

Chiliz fans can buy their favorite team's Fan Tokens using the native Chiliz token " CHZ " on socios.com, the crowd management platform that Chiliz uses. Sports fans staking $CHZ on Socios.com also have opportunity to receive new Fan tokens as well as a up to 10% $CHZ bonus yield.

Malgré sa révolution du paysage financier, Bitcoin rencontre certaines limites, notamment lorsqu’il s'agit d’interagir avec des blockchains plus récentes comme Ethereum. C’est là qu’intervient le Wrapped Bitcoin (WBTC) : il permet à Bitcoin d’opérer sur le réseau Ethereum et d’accéder à l’univers de la finance décentralisée (DeFi).

Chaque token WBTC est adossé à un Bitcoin réel dans une réserve (ratio 1:1), combinant ainsi la valeur de Bitcoin avec la flexibilité des smart contracts d’Ethereum. Contrairement aux variantes de Bitcoin qui cherchent à améliorer sa technologie, WBTC ne modifie pas Bitcoin, mais étend son utilité.

Dans cet article, découvrez comment fonctionne WBTC, ses avantages, ses risques et son rôle clé dans l’écosystème DeFi.

Résumé rapide

• Faire le pont entre Bitcoin et Ethereum : WBTC permet aux détenteurs de Bitcoin d'accéder aux services DeFi sans vendre leur BTC.
• Utilité et liquidité accrues : prêtez, empruntez, échangez ou générez du rendement avec vos BTC.
• Des transactions plus rapides et plus souples : grâce au réseau Ethereum.
• Risques et compromis : WBTC implique une certaine centralisation et dépend de la confiance envers des entités de garde.

Wrapped Bitcoin (WBTC), c’est quoi exactement ?

WBTC est un token ERC-20 qui représente du Bitcoin sur la blockchain Ethereum. Lancé en janvier 2019 par BitGo, Kyber Network et Ren, avec le soutien de grands acteurs DeFi comme MakerDAO ou Set Protocol, WBTC est aujourd'hui un pilier des solutions d'interopérabilité entre blockchains.

Chaque token WBTC est garanti par un Bitcoin stocké par un dépositaire. Contrairement aux stablecoins (comme l’USDC), dont la valeur est indexée sur le dollar, le prix du WBTC évolue selon celui de Bitcoin.

Le protocole est supervisé par le WBTC DAO, une organisation décentralisée qui veille à la transparence et à l'intégrité du processus.

WBTC appartient à la famille des "wrapped tokens" — des cryptomonnaies encapsulées pour circuler sur d’autres blockchains.

Pourquoi le Wrapped Bitcoin existe-t-il ?

WBTC a été conçu pour combler le fossé entre Bitcoin et Ethereum :

1. Bitcoin n’est pas fait pour les smart contracts

Bitcoin mise sur la sécurité avant tout, limitant ses possibilités pour les applications complexes. Ethereum, lui, est conçu pour les smart contracts et la DeFi.

2. Permettre aux détenteurs de BTC d’accéder à la DeFi

Avant WBTC, utiliser son Bitcoin dans la DeFi nécessitait de le convertir. Désormais, les utilisateurs peuvent interagir avec l’écosystème Ethereum tout en conservant la valeur de leur BTC.

3. Débloquer la liquidité du Bitcoin

Bitcoin représente une énorme valeur marchande. WBTC permet de mobiliser cette liquidité dans l’univers DeFi.

4. Accélérer les transactions

Sur Ethereum, les transferts de WBTC sont plus rapides et parfois moins coûteux qu’avec Bitcoin directement.

Comment fonctionne Wrapped Bitcoin ?

WBTC relie Bitcoin à Ethereum via un processus transparent impliquant plusieurs acteurs clés :

• Wrapping (BTC → WBTC) : l’utilisateur envoie ses BTC à un dépositaire, qui émet ensuite l'équivalent en WBTC sur Ethereum.
• Unwrapping (WBTC → BTC) : l'utilisateur brûle ses WBTC et reçoit l'équivalent en Bitcoin.

Participants principaux :

• Dépositaires (ex : BitGo) : gardent les BTC en réserve.
• Marchands : gèrent la création et la destruction des WBTC.
• Utilisateurs : détiennent et utilisent WBTC dans la DeFi.
• Membres du WBTC DAO : assurent la gouvernance.

Transparence :

• Preuves de réserve publiques (adresses Bitcoin vérifiables).
• Vérification on-chain des mint et burns.

WBTC est compatible avec toutes les dapps Ethereum, et peut aussi être échangé sur les DEX pour plus de facilité.

Les avantages de WBTC

1. Accès à la DeFi

• Prêt et emprunt : utilisez WBTC comme collatéral sur Aave ou Compound.
• Yield farming : fournissez du WBTC pour obtenir des récompenses.
• Provision de liquidité : participez aux pools d’échange décentralisé.
• Actifs synthétiques : créez des actifs dérivés sur base WBTC.

2. Liquidité améliorée

• Renforce les pools DeFi avec la valeur de Bitcoin.
• Réduit les frais de glissement lors des échanges.
• Offre un collatéral fiable aux protocoles DeFi.

3. Transactions rapides

• Confirmation plus rapide (~12 secondes sur Ethereum).
• Intégration fluide aux smart contracts.

4. Utilisations étendues

• Participer à des applications avancées sans vendre son Bitcoin.
• Stocker WBTC avec d'autres actifs Ethereum.
• Utiliser WBTC dans les jeux blockchain et marketplaces NFT.

Les risques associés

Risques de garde

WBTC repose sur des dépositaires centralisés — une confiance est donc nécessaire.

Risques liés aux smart contracts

Malgré les audits, des failles de code restent possibles, sans oublier les risques liés aux congestions ou aux frais élevés sur Ethereum.

Risques de marché

WBTC suit la volatilité de Bitcoin : son prix peut varier rapidement.

Complexité opérationnelle

Naviguer entre les réseaux Bitcoin et Ethereum peut être technique pour les nouveaux utilisateurs.

Alternatives au WBTC

D’autres projets offrent des solutions similaires, chacun avec ses propres compromis :

• renBTC
• tBTC
• sBTC
• HBTC
• pBTC

Conclusion

Wrapped Bitcoin marque une avancée majeure pour connecter Bitcoin à la DeFi. En combinant la robustesse de Bitcoin et l’innovation d’Ethereum, WBTC ouvre de nouvelles portes aux utilisateurs.

À retenir :

• Pont entre deux mondes : Bitcoin + Ethereum = nouvelles possibilités.
• Avantages et compromis : Accès facilité à la DeFi, mais au prix d'une certaine centralisation.
• Écosystème en expansion : D'autres formes de "wrapped assets" émergent.
• Adoption croissante : La demande pour des solutions comme WBTC ne cesse d’augmenter.

En bref, Wrapped Bitcoin montre qu’on peut repousser les limites des cryptomonnaies en créant des ponts plutôt qu'en réinventant la roue.

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As we move into a more digital world with enhanced security systems, so too are hackers and fraudsters. With millions of dollars lost each year at the hands of these ill actors, in this article we take a look at the 5 most common crypto scams and how to spot them. The financial world need not be a scary place, with a few precautions in place you can bank on being able to avoid them.

What is a crypto scam?

A crypto scam is a type of investment fraud revolving around cryptocurrencies. According to a report by Chainalysis, a record-breaking $14 billion of crypto was stolen last year through crypto scams. While there are many different types of crypto scams, of which we'll explore 5 below, the common thread is that crypto is wrongfully taken from a user through fraudulent activities. 

The biggest crypto scam of recent times was in late 2020 when people hacked into the Twitter accounts of high profile individuals and claimed that should someone send Bitcoin or Ethereum to an address they will receive twice the value back. These accounts included the likes of Barack Obama, Elon Musk and Joe Biden. 

The top 5 most common crypto scams

While there are an infinite amount of crypto scams out there, below we are highlighting the 5 most common ones.

Fake crypto exchanges

These types of exchanges provide a buy/sell platform on which users can trade cryptocurrency, however, once they have deposited the funds they cannot withdraw any money. These funds might still appear on the platform although the money is long gone. 

Always read the reviews of a platform, and do your own research before depositing money anywhere. 

Ponzi schemes

Ponzi schemes might have started in the late 1800s but they're still here. The scheme works in such a way that each member earns rewards by recruiting new members, whose money is then used to pay off older members. This eventually reaches a saturation point after which it collapses. 

Always do your due diligence and ensure that the scheme you're investing in is solid. If it sounds too good to be true, it probably is.

Fake investment schemes

Be wary of an investment opportunity promising to deliver unbelievable gains. This might be in the form of depositing funds on a platform only to lose the money or struggle to withdraw it at a later stage. These are often circulated through well-known publications or on social media with celebrities "endorsing" the products. 

Pump and dumps also fall into this category. These schemes are created when a large group of people decide to invest in a coin, only to drive up the prices and cash out at the top. Many people are then left with a worthless coin at the end, having lost their investment. 

Imitating a crypto exchange

Similar to the concept of phishing, someone might create a social media account of a big exchange and contact the user "on behalf of the company". This is intended to gain your trust and is either done in an attempt to gain your passwords, or with a message that you owe large amounts in tax which needs to be paid in Bitcoin immediately to avoid imprisonment. 

Never follow links in an email, rather access the site from your own browser directly and be sure to check the URL. Successful scams of this nature often have a small typo in the URL which goes unnoticed. 

Malware & ransomware

The malware allows scammers to gain access to your computer, either locking you out of files or stealing credit card or crypto address details. With this information, they can drain your accounts in minutes. 

Ransomware works slightly differently in that the scammers lock the entire computer and demand a ransom to gain access again. This is often paired with blackmail where the victim, and in some cases organizations, are threatened that if they don't pay sensitive information will be released. A lot of victims in this situation manage to get out of it unharmed.

These might sound very scary, but should you maintain safe online protocols and check URLs before entering your details, they should be entirely avoided. 

5 tips on how to avoid crypto scams

These might sound obvious but it never hurts to read them again. Below are 5 tips on how to stay vigilant and avoid crypto scams entirely.

• Be wary of phone calls and emails claiming to be from exchanges and never click the links from them. 
• Never give your password, private key or security codes to anyone.
• Never give someone remote access to your device.
• Look out for social media accounts imitating legal firms or exchanges or a prominent person in the industry. Support will never contact you from a social media account.
• And lastly, if it sounds too good to be true - it probably is. 

Easily avoided, comfortably secure

We hope this information assists you in keeping your data and money secure online, proper security is always imperative when using payment methods or services on the internet. As technology evolves, so too must our security systems and vigilance. With these tips above you should be well on your way to spotting something that doesn't quite look right, and avoiding crypto scam.