Whale’s Persistent Investment in $VIRTUAL: A Risky Gambit After $5 Million Loss

Here in the realm of cryptocurrency, large investors—affectionately dubbed “whales“—can and do exert the power to sway the market in either direction.

When a whale decides to either buy or sell not just a few but many thousands of a certain token, the price will respond in either an up or down motion with varying degrees of speed and intensity; the very nature of the term “whale” indicates that we’re dealing with a kind of investor whose actions cause some serious splashing about. One whale who, not too long ago, suffered a notable $5.02 million loss on their investment in the token $VIRTUAL, has now returned to the market (a few weeks later) and is doubling down on that very same token.

A Risky Move: The Whale’s First $VIRTUAL Investment

At the beginning of this month, the whale made news when it poured a lot of money into a cryptocurrency token called $VIRTUAL. The token had recently been in the market spotlight, and the whale’s purchases totaled a breathtaking $13.91 million, netting them 5.038 million tokens. The whale’s average buy price for $VIRTUAL was $2.76. Since then, however, the price of the token has fallen—and with it, the whale’s investment.

The whale was forced to sell off their $VIRTUAL holdings at $1.76 per token after the market decline, producing a loss of $5.02 million. This translated to a “36% markdown in value” (Chow, 2023) from the amount they were last seen investing at. As painful as this setback might have been, the whale’s commitment to the project seemed unaffected, and they were undeterred in continuing to make what appears to be a journey along with $VIRTUAL toward some unknown but presumably promising future.

A New Strategy: Whale’s Return to $VIRTUAL

Only three hours ago, the whale made a stunning move, transferring a giant amount of funds back into the $VIRTUAL market. The investor sent 4,006 ETH, worth around $10.9 million, to a new address (0xa8f…246). This can only mean one thing; there is renewed interest in $VIRTUAL. At this point, the whale has spent 419 ETH ($1.14 million) to purchase 1.049 million $VIRTUAL tokens, at an average price of $1.09 per token.

Choosing to dive back into the market with such a large sum of money is noteworthy, especially given the investor’s past loss. The whale appears to have faith in the long-term growth of $VIRTUAL, despite its recent performance. This decision has been met with skepticism from a good number of folks in the crypto community. The counterargument here is that if the largest holder of $VIRTUAL has made the decision to re-enter the market, it must mean that they see a potential for the token to grow—perhaps even now, when it’s at what some would call “rock bottom.”

A Persistent Belief in $VIRTUAL’s Future

The return of the whale to the $VIRTUAL market underscores a key trait of large-scale investors: persistence. They have endured a painful loss of over $5 million. Yet, instead of pulling back in the face of such a substantial hit, the whale has chosen to swim right back into the $VIRTUAL waters, doubling down on their investment and betting that price recovery is around the corner.

The new purchase’s average price of $1.09 is considerably lower than the whale’s earlier entry point of $2.76. This implies that the whale may be buying the dip—purchasing the token at a lower price, betting on a market correction and eventual rebound. Many (if not most) investors believe that buying in at lower prices during market downturns can yield significant profits when the market turns around. So is the whale following this common (if not universal) investor strategy?

Currently, the whale holds a substantially greater quantity of $VIRTUAL than what they invested initially. They possess 1.049 million tokens, and if the future of $VIRTUAL is promising, they should fetch considerable profits when the token appreciates.

The Future of $VIRTUAL: Is It Worth the Risk?

Continuing to invest in $VIRTUAL carries some risks. The crypto market is extremely unstable, and there is always the potential for more losses, especially among those who are big believers in a single token. Our whale has probably done some really extensive research on $VIRTUAL. She may have even pulled out some of the hair on the left side of her head because she is so strongly invested in this argument. Yet, as with most stuff in crypto, there are no guarantees — except that you will lose 100 percent if the project goes belly up.

Currently, the whale is placing its confidence in the idea that the market will someday pay for their sticking-to-it-iveness. Will this gamble pay off? Over the long haul, will we see the whale knocking back further losses, or will we see it rewarded and in the black? I’m not sure the annual report next week will answer that, especially since the kind of high-risk, high-reward nonsense that Virtual throws around might also be responsible for accounting rigging that paints well for shareholders.

Conclusion: The Perils of Whale Investing

The journey of this whale with $VIRTUAL is an enthralling tale of the high-stakes, high-reward world of investing in cryptocurrencies. In fact, $VIRTUAL’s brother token, $RISK, reminds us of the ancient tale of Icarus, the young Greek who flew too close to the sun and fell to earth. Despite incurring heavy losses, these whales steadfastly continue their work in crypto. Whether their decisions are the right ones or financially self-destructive remains to be seen. To other investors in the space, this experience reminds us, full of tales as they are, of the high-risk nature of trading in volatile tokens. Indeed, the subtitle of the $VIRTUAL release on Medium—”A Crypto Trading Tale of High Risk & High Reward”—could apply to many such stories in the space.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: peshkov/123RF // Image Effects by Colorcinch