Dolphin Definition
In the cryptocurrency and blockchain ecosystem, a dolphin is a term used to refer to an individual or entity that owns a significant, but not dominant, amount of a particular cryptocurrency. It is generally used in relation to Bitcoin ownership, although it can be applicable to other cryptocurrencies as well. The term comes from the aquatic food chain, where whales and sharks are those who hold substantial amounts, dolphins hold a moderate level, and minnows or shrimp hold small amounts.
Dolphin Key Points
- Dolphins are significant, but not dominant owners of a crypto asset.
- They are influential in the market but do not have the power to manipulate prices single-handedly.
- Dolphins often have a long-term investment strategy and hold large amounts of a coin.
- The term is borrowed from the aquatic food chain to denote relative power and influence.
What is a Dolphin?
A dolphin is a substantial investor in the cryptocurrency market. They are usually seasoned traders with a substantial portfolio, who often engage in long-term investment strategies. While they do not have the power to significantly sway the market single-handedly, their actions and strategic moves can influence other investors and contribute to market trends.
Who are the Dolphins?
Investors defined as dolphins can be individual traders, institutions, or investment funds. These entities have substantial financial resources to invest and are recognized for their seasoned understanding of the cryptocurrency market. While they may not possess the market-moving clout of whales, the actions of dolphins usually echo the primary market trends.
When did the Term Dolphin Originate?
The term ‘dolphin’ sprung from online crypto communities and forums. It follows the aquatic food chain metaphor to represent the different tiers of investors in the crypto market, with the most significant being ‘whales,’ followed by ‘sharks,’ ‘dolphins,’ and then ‘fish’ or ‘minnows’.
Where are Dolphins Located?
In the decentralized world of cryptocurrencies, dolphins can be located anywhere globally, provided they have internet connectivity and access to cryptocurrency exchanges. They could be in financial hubs like New York and London or in remote areas of the world.
Why are Dolphins Important?
Dolphins form a crucial part of the crypto ecosystem. Their sizeable holdings and market activities add to the market’s liquidity and volatility. They often contribute positively to market trends and can help make the market more resilient through their long-term investment strategy and ability to hold through market downturns.
How do Dolphins Influence the Crypto Market?
Through their substantial crypto holdings and trading activities, dolphins can have a direct impact on market trends. While they don’t have the power to steer the market single-handedly, their trading activities, when viewed collectively, can contribute to the overall market direction. They also set an example for smaller investors, and their moves can be indicative of current trends in the broader marketplace.
