Here’s Why Whales Are Buying Coins from 2017

According to WhaleStats tracking service, Ethereum whales have started massively purchasing cryptocurrencies that were popular back in 2017, including such assets as REQ, LINK and OmiseGo.

One of the biggest whales on the Ethereum network has made the most recent purchase of the “old-school” coins, tagged “Light.” The volume of the purchase totaled $2 million, or 500,000 OMG coins.

? ETH whale “Light” just bought 500,000 $omg ($2,065,000 USD).

Ranked #1 on WhaleStats: https://t.co/g2Ri3NWSgL

Transaction: https://t.co/BLLZQ8TD4B#OMG #ERC20 #DEFI #ETH #whalestats

— WhaleStats – BabyWhale ($BBW) (@WhaleStats) March 4, 2022

Previously, U.Today reported that anonymous whales purchased a million worth of Request Network tokens despite the anemic price movements of the asset on the market.

Chainlink, on the other hand, constantly appears at the top of most purchased assets among whales, despite representing cryptocurrencies from the 2017 era. Compared to OMG and REQ, Link’s chart looks more active as the volatility and liquidity is being constantly provided for the coin.

Why are whales buying “old coins?”

According to both market and on-chain data, there is no fundamental reason to buy coins that have not been in the spotlight for a long time, but at the same time, assets like OmiseGo and REQ bottomed out and are now trading close to ATLs.

By purchasing bottomed-out cryptocurrencies with a relatively small volume, investors are able to secure their funds since, due to a lack of volatility, volume and liquidity, the abovementioned assets are less likely to drop further and have more chances to enter a new rally.

By using a similar strategy, many whales secured significant profits when the Request Network token suddenly rallied by over 450% in a matter of days. But because of the speculative nature of the growth, the token could not keep the growth rates and quickly tumbled to the bottom.