Veil Token (VEIL), a privacy-focused virtual currency that prioritizes anonymity, security, and user economic growth, is attracting attention among crypto market participants. According to data shared today by market analyst Lookonchain, a whale has been accumulating VEIL for multiple days now. As per the data, the trader has so far spent $5.04k to purchase 1.47 million VEIL tokens in the past three days. The trader’s consistent acquisition of the coins over the three days not only raises eyebrows and questions about the digital asset but also signals a positive expectation concerning the Veil Token project.
Understanding Veil Token and its Demand
This whale activity is a crucial indicator of market trends and tokens with growth potential. The trader, who currently holds 1.47 million VEIL tokens, has earned profits of more than $606,000 through purchasing low and selling high. This shows the cryptocurrency’s high growth potential.
On-chain data shows that Veil Token (also commonly known as Veil Cash) is a privacy-centric crypto built on the Base Layer-2 network that provides users with financial anonymity and confidentiality during transactions. Web3 users increasingly prioritize privacy, viewing it as a necessity rather than a feature. This explains the reason for recent market rallies among emerging privacy-preserving cryptocurrencies like Session Token (SESH), Umbra (UMBRA), and MinoTari (XTM), which have been the best-performing tokens in the privacy coin sector late week, with 215%, 158%, and 31.9% gains, respectively.
Privacy coins like Veil Token (VEIL) conceal transaction details of sender and receiver, providing more advanced anonymity than pseudonymous crypto assets like Bitcoin (BTC).
The Trader’s Strategic Bet on VEIL
Despite VEIL’s current market downturn, the trader’s latest token purchase highlights bullish conviction in the asset’s long-term capability. Veil’s price has been down 4.4% and 11.1% in the last 24 hours and the week, respectively, currently making its price stand at $0.09672, highlighting its slump.
The decision to buy and hold the asset showcases confidence that the undervalued token holds significant market potential. Whales like this trader often influence market dynamics as their trades normally come before huge price moves, creating opportunities for other traders to take advantage of the market volatility.