Behind the booming pre-sale of Cold Wallets: signals of Whale bets and risks for retail investors.

Source: ONESAFE

Original Title: How Do Whale Behaviors in Crypto Presales Affect Market Sentiment?

Compiled and organized by: BitpushNews

In the cryptocurrency market, whales—those who hold a large amount of crypto assets—often serve as a bellwether during the project presale stage. Active buying by whales in the presale typically represents strong confidence and a firm bet on the project, which often becomes a reason for many retail investors to "follow the lead." Conversely, once whales start to sell off, the market can easily fall into panic, creating a chain reaction.

The influence of whales is not only reflected in price fluctuations. Large transactions can directly shake market liquidity. For example, a round of concentrated selling may cause liquidity stress, raise trading costs, and put small and medium investors in a passive position. Therefore, whale behavior is both a reflection of their market sentiment and essentially sways the market atmosphere, thereby affecting retail investors' risk assessment and willingness to participate.

What does the booming presale of cold wallets mean?

The recent presale performance of cold wallets has been quite impressive: the total fundraising amount exceeded 5 million USD, and all 14 phases sold out rapidly. What does this pace indicate? At least it shows one thing: projects that truly address the pain points of the cryptocurrency industry are continuously sought after by capital.

Unlike the traditional practice of wallets charging high transaction fees, cold wallets propose a new paradigm—users can actually earn token rewards during their on-chain interactions. This positive incentive mechanism is clearly more aligned with the Web3 concept of "earning through usage," which has consequently attracted a large number of whales to take early positions.

As each round of presale prices gradually rises, the willingness of early investors to enter the market also increases. During this process, the "rush to buy effect" boosts market enthusiasm and demonstrates the current market's strong preference for "utility + user incentive" type projects.

Institutional entry, what risks should retail investors pay attention to?

Institutional players are appearing more frequently in the cryptocurrency market. While this helps to enhance market maturity, it also brings several new risks that retail investors must face:

• Price volatility: The massive inflow and outflow of institutional funds can easily trigger short-term severe fluctuations, catching retail investors off guard;
• Regulatory uncertainty: Current cryptocurrency regulations are not yet clear, and institutions may be affected by policy fluctuations, which may in turn impact ordinary investors;
• Cybersecurity risks: Large holdings by institutions become prime targets for hacker attacks. Once a security incident occurs, retail investor confidence will also be severely impacted;
• Liquidity disruption: Large institutional trades impact market liquidity, often driven by retail buy orders;
• Reputation risk: Once a project causes institutional divestment due to negative events, market sentiment will quickly reverse, leaving retail investors as the "last buyers."

Therefore, in the face of the trend of institutions gradually increasing their positions, retail investors need to remain clear-headed and avoid blindly following the trend.

What insights can cold wallets bring to the next generation of encryption projects?

The successful presale of the cold wallet provides a valuable example for crypto startups—it's important not only to discuss concepts but also to design token economics around "use cases" and "real incentives."

The project stimulates user activity through rewarding on-chain interactions, while also showcasing its design philosophy of "decentralized participation." In the context of increasingly strict regulations and the growing demand for privacy and security, the emphasis on security in cold wallets has also become an important factor in attracting investors.

Cold wallets reserve a large number of tokens for user incentives, which not only enhances market attention but also lowers the initial financing threshold. This model shows that the presale stage is not just a money-grabbing window, but can also serve as a "touchstone" for validating project popularity and user stickiness.

How to cope with the volatility of cryptocurrency wages?

As more and more practitioners receive their salaries in cryptocurrency, wage volatility has become a reality that must be faced. Here are some strategies to cope with it:

• Use stablecoins for payroll: Avoid the impact of cryptocurrency market fluctuations and ensure purchasing power;
• Diversification of investment portfolios: Don't put all your eggs in one chain;
• Dollar-Cost Averaging Strategy: Smoothing out market fluctuations through a regular and fixed investment approach;
• Use a professional compensation platform: automatic conversion, easier tax handling, and reduced operational risk;
• Enhance market awareness: Maintaining sensitivity to information is essential for making informed decisions.

In summary, the behavior of whales in crypto presales has an extraordinary impact on market trends. The popularity of cold wallets also indicates that projects that genuinely focus on user needs and emphasize practical application scenarios can still navigate through bear market cycles and lead new market waves. In the context of institutions gradually laying out their strategies, retail investors need to be more cautious, seize opportunities, and also做好风险防控.