A whale has made a substantial deposit of 2 million OM tokens, worth an estimated $12.4 million, to Binance, the leading global cryptocurrency exchange.
In an impressive show of savvy trading and timing, the whale has followed up this move with a series of other moves as they continue to find success with OM tokens. It seems we might need to give the whale a name soon, given that they are now clearly on a profitable path with this token.
This latest event is just the newest chapter in the series of transactions we’ve seen that have the whale riding the waves of OM’s price volatility and ultimately raking in a huge profit. What the whale has done lately makes it appear that they are employing a well-thought-out strategy, which could yield even more nuggets of insight into how they think about market trends and staking tokens.
A Journey of Staking, Unstaking, and Reaping Profits
To understand how successful this whale has been, we need to go back and look at moves it made previously. On April 17, 2024, the whale made a noteworthy withdrawal of 8.806 million OM tokens from Binance at a price of just $0.682 per token. This transaction, which cost an estimated $6.01 million, laid the foundation for what would turn into a highly profitable investment. After the withdrawal of these tokens, the whale staked half of the 8.806 million OM tokens on June 1, 2024, locking them in for a period of several months in order to earn rewards and benefit from potential price increases.
Now, the whale has a whole new way of going about things. Over the past nine hours, the whale has almost completely unstaked from the OM Staking Pool, unstaking a total of 7 million OM tokens. These tokens were then deposited onto Binance, and at the time of this writing, the whale’s 7 million tokens are worth about $43 million (give or take a few). That’s an almost completely unstaking whale, not a token-nabbing one.
The Whale’s Massive Profit: A 795% Increase
The initial price tag for the whale’s OM tokens was just over $6 million when they first obtained them. Now, however, they have deposited 7 million OM tokens to Binance. This means that the estimated total profit the whale has made from this investment sits at a whopping $47.79 million.
Currently, the whale possesses 1.67 million OM tokens, worth roughly $10.35 million. This leftover stake highlights the whale’s continued faith in OM’s growth and may suggest that they plan to retain a decent portion of their investment in hopes that further price appreciations and/or staking opportunities arise in the near future.
This set of actions demonstrates a strategy that not only captures staking rewards but also benefits from price movements. By unstaking tokens at a price peak and then using Binance’s liquidity to sell them, this whale has profited from OM while keeping a large enough portion of it that he may still be considered a significant holder.
A Strategic Approach in a Volatile Market
The decision by the whale to unstake a large amount of their OM tokens and make a big deposit into Binance is a solid signal of confidence in the present market conditions. This was clearly a capitalizing-on-the-rise moment. The former modest investment has become a large fortune. And the choice to keep 1.67 million OM tokens suggests that the whale may well be as into future OM price gains as the next guy.
Many crypto investors tend to concentrate purely on spot trading or the short-term speculative moves you see in today’s markets. This whale isn’t one of them. This whale demonstrates that staking can absolutely floor a crypto portfolio and shortcut your way to riches if you’ve timed the market right, because staking combined with well-timed market maneuvers turned these OM tokens into a highly valuable asset. And the whale’s not alone in this; increasing number of crypto portfolios clearly highlight that.
OM’s recent performance, and the whale’s strategic use of staking, allow us to revisit the investment lesson of using staking to hedge in a down market.
Here is what happened. The whale started off by buying large quantities of the token. Then, instead of just holding, they staked their tokens as well, benefitting in a twofold manner from both the appreciation of the token and the returns generated from staking. This is staking hedging.
It allows you to stay long without worrying too much because you are kind of neutralized in market movements.
Conclusion: A Masterclass in Crypto Strategy
The latest whale move with OM has been confirmed, with 2 million OM tokens deposited to Binance quite recently. This follows a series of profitable moves with OM tokens, suggesting that whoever—or whatever—entity behind these whale moves is still bullish on OM.
How profitable have these moves been? An initial investment of 6 million dollars made in 2021 mushroomed into 47 million dollars by October 2023.
Profitable OM whale moves by the numbers:
1. An initial investment of $6 million in 2021
2. Turned into $47 million by October 2023
3. With 1.67 million OM tokens still in their possession, what’s next for the whale?
The actions of the whale serve to remind crypto traders that there are both potential rewards and risks involved in staking and market timing. Not every investor has the same resources or opportunities, but the whale’s success would seem to suggest that, in the world of crypto trading, it’s better to be strategic, to think at least somewhat, if not very, planfully and to be in it for the long haul.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.