In my post on What's happening with PEPE? on the 25/08/2023 I wrote that it would be a good idea to learn how learn how to keep track of blockchain movement and that there are organisations that keep track of the blockchain movements. I've now been asked the question how we can see blockchain transactions and I thought I'd answer as a post because it might be useful for a wider set of people.

First off, we realise that we do not need visibility to all transactions. Most of them would just be clutter. And anyone can look at a chart to see how the market is moving. Usually zig-zag with a long range up or down. What we need is to see if a "whale" has suddenly moved large amount of currency. The beauty of crypto is, again, that we do not need to hack into the whale's account to see this. All transactions are on the public blockchain. But first things first.

What is a whale? A whale is a rich investor holding a large number of coins, usually large enough to have an impact on markets and change trends if they place large orders. The name is deserved, as these huge creatures have an impact on the whole ecosystem, just like their oceanic cousins. With some crypto currencies, a whale could hold a whopping 10%.... and if he dumps that on the market, it will impact the price of the coin significantly.

What we need to be able to do, is to track these whales. Just like the PEPE movement of 16+ Trillion coins was noticed, how do we notice other significant movents in the crypto space? There is an App for that! I do not endorse products or promote them here, but searching for a "crypto whale tracker app" on your favourite search engine should bring up many results (over a million when I tried it last). While there are many apps, some of them do charge, and like most foul things nowadays, they don't want to hand you the product when you pay for it, but tie it to the time axis by asking you to subscribe. I suggest you use a free whale tracker site or app (yes these do exist as well and the search will bring them up).

Why should you track whales?
Just today (29/3/2023) a whale transferred a whopping 426 million XRP (US$220 million) to another wallet. The least you should do with this information is to raise your eyebrows. However it is worth looking to see where it went. If it goes to known exchange address, it might be a good assumption that these are going to be sold soon and hence the price may come down marginally, but more so that the whale is actually selling because he expects the coin to tank. It could also be that he is buying a new yacht to go and see his cousins with his grandfather, but which is more likely. Usually, the following reasons are proffered by whale watchers (for watching whales):

• Tracking whale activities provides valuable insights into market trends, sentiment, and potential price movements (i.e.bullish or bearish behavior)
• Observing whale movements can serve as an early warning system for potential price fluctuations.
• Whale tracking helps in identifying whether large investors are accumulating or distributing a particular cryptocurrency.
• Whale movements can confirm or refute existing trends in the market.
• Monitoring whale activities aids in assessing the liquidity of a cryptocurrency.
• Whale tracking can help identify potential market manipulation or Fraud as in the recent (alleged) case with PEPE which started me off on these threads.
• Understanding how whales diversify their portfolios can provide us with ideas for diversification strategies (this requires a bit more involved whale tracking than discussed so far. Moby Dick here we come)
• Whale activities often involve institutional investors and we can learn about the traditional financial sector potentially coming in ti cryptocurrencies.
• Whale movements can help us refine strategies by incorporating insights from whale movements. (With whales what would you rather do, align or be contrarian? I'd chose align)
• For long-term investors (a strategy I wholeheartedly endorse), tracking whale movements can help with risk management. Reassess holdings if there are significant whale movements.
• Whale tracking allows investors to base their decisions on data and evidence rather than speculation or emotion, although this evidence may be the result of the whale's speculation and emotion, which, given that he is a whale, you have to respect.
• Whales are often scrutinized by the community, leading to increased transparency and accountability in the cryptocurrency ecosystem.

Coming back, what are the tools available to track whales?

Again, remember that I don't promote or endorse any particular tool over another but generally, the whale tracking tools available to everyday investors are of several kinds:

• Your Crypto Exchanges: Many exchanges offer features that to track large transactions and monitor trading activities of specific addresses. Some exchanges even have a "whale alert" system that notifies users of significant transactions.
• Blockchain Explorers: Blockchain explorers like Etherscan (for Ethereum) and Blockchair provide detailed information about transactions, wallet addresses, and token movements. You can use these explorers to track the activities of specific wallet addresses.
• Whale Alert: Whale Alert is a popular service that monitors and reports (in real time) large cryptocurrency transactions on various blockchains.
• Token Analyses Platforms: Platforms like TokenAnalyst offer insights into on-chain data, allowing you to track large transactions, wallet balances, and other relevant metrics. These platforms often provide visualizations and analytics tools to help you interpret the data.
• Social Media and Forums: Cryptocurrency communities on platforms like Twitter, Reddit, and specialized forums often discuss whale activities and share observations. Remember to take these with a pinch of salt.
• Data Aggregation Services: Some websites and platforms aggregate data from various sources, providing a consolidated view of whale activities. Do a search for "crypto data aggregation services".
• Cryptocurrency News Outlets: News websites that cover the cryptocurrency market often report on significant whale activities and their potential impact on the market and are often a good source of "inside" info.
• Technical Analysis Tools: Some charting and technical analysis platforms provide features that allow you to overlay whale-related data on price charts. If you can spot correlations between whale movements and price trends, you've got a winner.
• Telegram Channels and Groups: There are Telegram channels and groups dedicated to sharing information about whale activities. These channels can provide real-time updates and discussions. Again, a lot of the Telegram channels I've come across have been unsavoury.
• Custom Scripts and APIs: It is possible to create custom scripts or use APIs to fetch and analyze blockchain data related to whale activities. This requires programming skills and an understanding of blockchain technology, or getting the services of a freelancer who can help with programming. It might be worth it if crypto is your life-blood, in which case, I am guessing you wouldn't be reading this.

This post has turned out to be longer than my usual posts, and apologies for that. I hope you found it useful. With the terms mentioned, you should be easily able to do searches if you are interested in that particular item and my goal is to give you the terms and a broad understanding, and as always, nothing I say should be taken as financial or investment advice and you carry the onus for all your activities and I hold no liability for your actions arising after reading this blog. Sorry for the disclaimer, but it must form part of every one of my posts.

Have a wonderful life!